P1-1 Liability comparisons Merideth Harper has invested $25,000 in Southwest Development

Company. The firm has recently declared bankruptcy and has $60,000 in

unpaid debts. Explain the nature of payments, if any, by Merideth in each of the

following situations.

a. Southwest Development Company is a sole proprietorship owned by

Ms. Harper.

b. Southwest Development Company is a 50-50 partnership of Merideth Harper

and Christopher Black.

c. Southwest Development Company is a corporation.

LG 4