LO.2 Sea Green Enterprises reports the following assets and liabilities on its balance sheet. Assets Liabilities Net
Question:
LO.2 Sea Green Enterprises reports the following assets and liabilities on its balance sheet. Assets Liabilities Net Book Value Fair Market Value $925,000 200,000 $600,000 200,000 Sea Green has just lost a product liability suit with damages of $10 million being awarded to the plaintiff. Although Sea Green will appeal the judgment, legal counsel indicates that the judgment is highly unlikely to be overturned by the appellate court. The product liability insurance carried by Sea Green includes a payout ceiling of $6 mil- lion. For how much of the judgment is the entity and its owners liable if Sea Green is:
a. A sole proprietorship?
b. A partnership or an LLC? C. A C corporation?
d. An S corporation?
Step by Step Answer:
Essentials Of Taxation Individuals And Business Entities 2019
ISBN: 9780357233290
1st Edition
Authors: William A Raabe, James C Young