Yahoo Mail Weather Dory Student Portal Wacky Homework CengageNOWv2.1 Onl... Week 7: Homework Problem 18-4 (Algorithmic) (LO. 2, 3) Sea Green Enterprises ceports the following assets and liabilities on its balance sheet Net Book Value Fair Market Value Assets $420,000 $630,000 Liabilities 126,000 126,000 Sea Green just lost a product ability suit with damages of $6,300,000 being awarded to the plaintiff. Although Sea Green will appeal the judgment, legal counsel indicates the judgment is highly unlikely to be overturned by the appellate court. The product liability insurance carried by Sea Green includes a payout celling of $3,750,000 Assume any net assets of the company will be used to reduce the judgment For how much of the judgment is the entity and its owners liable if Sea Green is a sole proprietorship, a partnership, an LLC, a C corporation, and an 5 corp atio If an amount is zero, enter "0". a. If the form of the business entity is a sole proprietorship, the owner is ultimately able for 5 2.500,000 X Feedback Check The principal legal forms for conducting a business entity are a sole proprietorship, partnership, limited liability company, and corporation. From a Federal income tax perspective, these same forms are available with the corporate form being divided into two types (Scorporation and C or regular corporation) b. If the form of the business entity is a partnership, the partnership and the general partners are ultimately liable for 2,500,000 X Feedback VCM Wort Incorrect c. If the form of the business entity is an LLC, legal liability for its debts is limited to its its assets. Therefore, the members of the LLC have no personal liability for the $2,500,000 Feedback Check My W Partially correct d. If the form of the business entity is a C corporation, the corporation has limited liability of $630,000 The plaintiff will share with the other creditors with respect to claims against the assets The shareholders of the corporation have no personal liability for the remaining corporate debts. Previous Next heck My Work