Paul invests $10,000 cash in an equipment leasing activity for a 15% ownership share in the business.The remaining 85% owner is Amanda.Amanda contributes $10,000 and personally borrows $75,000 that she also invests in the business.What are the at-risk amounts for Paul and Amanda? $\begin{array}{llll}&\text { Paul }&\text { Amanda }\
a.&\$ 10,000 & \$ 10,000 \
b.&\$ 10,000 & \$ 85,000 \
c.&\$ 10,00 0 & \$ 73,750 \
d.&\$ 21,250 & \$ 73,750
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Question

Paul invests $10,000 cash in an equipment leasing activity for a 15% ownership share in the business.The remaining 85% owner is Amanda.Amanda contributes $10,000 and personally borrows $75,000 that she also invests in the business.What are the at-risk amounts for Paul and Amanda? $\begin{array}{llll}&\text { Paul }&\text { Amanda }\
a.&\$  10,000 & \$  10,000 \
b.&\$  10,000 & \$  85,000 \
c.&\$  10,00 0 & \$  73,750 \
d.&\$ 21,250 & \$  73,750
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

Paul's at-risk amount is the $10,000 he invested. Amanda's at-risk amount includes her $10,000 investment plus the $75,000 she personally borrowed and invested, totaling $85,000.

Paul Invests $10,000 Cash in an Equipment Leasing Activity for a 15