Alf and Liz Set Up a Partnership to Manufacture Plastic

Alf and Liz set up a partnership to manufacture plastic containers for washing golf balls. They needed $30,000 capital to purchase the machinery. On December 27, Jeff put $30,000 into the partnership for purchasing the machinery on the understanding that he would be a limited partner. Liz was to register the limited partnership but with the New Year and a week's holiday she didn't have an opportunity to do the actual registration until January 15. On January 6, Alf purchased the machinery but decided on an upgraded machine at $50,000. In February, when payments on the machine stopped, the vendor sued Jeff for $25,000, being the balance owing on the purchase contract. In this situation, Jeff would be responsible for which of the following amounts?

A) $25,000
B) $5,000
C) Noting
D) $30,000
E) $12,500