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The Partnership of Nurr,Cleamons,and Kelly Was Insolvent,as Was Cleamons Personally

Question 19

Multiple Choice

The partnership of Nurr,Cleamons,and Kelly was insolvent,as was Cleamons personally.The partnership had begun liquidating its assets and Cleamons' capital account had a debit balance.How would the claim of Nurr and Kelly against Cleamons be ranked in comparison with the claims of Cleamons' other creditors?


A) It ranks lower in priority than Cleamons' personal creditors and the creditors of the partnership.
B) It ranks equal in priority with the claims of Cleamons' personal creditors.
C) It ranks lower in priority than Cleamons' personal creditors but higher in priority than the creditors of the partnership.
D) It ranks higher in priority than Cleamons' personal creditors and the creditors of the partnership.
E) It ranks higher in priority than Cleamons' personal creditors but lower in priority than the creditors of the partnership.

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