Question
Surf Partners is an existing general partnership with two partners, Jeff and Damon. Over the years, Surf Partners has incurred over $200,000 in debt. As
Surf Partners is an existing general partnership with two partners, Jeff and Damon. Over the years, Surf Partners has incurred over $200,000 in debt. As of 2010, the partnership owed $200,000 in debt to the Bank of Honolulu. In 2020, Jeff and Damon decide to invite Chris to join the partnership in order to infuse more capital into the partnership. In order to join the partnership, Chris would need to contribute $50,000 as his capital contribution to the partnership. Chris joins the partnership in 2020 and contributes the $50,000 as his capital contribution. Chris' capital contribution goes to pay down the $200,000 debt so that only $150,000 is owed to Bank of Honolulu. Shortly after Chris joins the partnership, Surf Partners borrows an additional $100,000 in 2021 from First Local Bank. The partnership continues to struggle financially and finally defaults on all of its loans. The partnership has a total of $250,000 in debt owed to various banks. How much of the debt can Chris be held personally liable for? Explain.
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