Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnson Trucking, Inc., owned by Pat Johnson, charged its fuel purchases to an account at Juice Express. When Johnson Trucking, Inc. was not paid on

Johnson Trucking, Inc., owned by Pat Johnson, charged its fuel purchases to an account at Juice Express. When Johnson Trucking, Inc. was not paid on several jobs, it was unable to pay amounts owed to Juice. Shortly thereafter, Johnson Trucking, Inc. ceased doing business and was dissolved. However, Pat continued to provide trucking services as a sole proprietor. Juice sued Pat Johnson for the unpaid amount – about $35,000. Pat argued that he was not personally liable for corporate debt. What are the factors the court will consider in deciding whether or not to pierce the corporate veil? Should the court pierce the corporate veil? Why or why not?

Step by Step Solution

3.42 Rating (149 Votes )

There are 3 Steps involved in it

Step: 1

Factors that court will consider in deciding to pierce corporate v... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

12th edition

1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056

More Books

Students also viewed these Finance questions

Question

Did the researcher use triangulation?

Answered: 1 week ago