Douglas and Johnson each invested $50 000 in a partnership where they agreed to share profits 60% Douglas,40% Johnson.The partnership business was not successful and now has no assets.In addition they are being sued for $80 000 by a supplier for non-payment of invoices.What is the amount for which Douglas could be held personally responsible if the lawsuit is successful ignore any possible legal costs.
A) Zero
B) $40 000
C) $48 000
D) $80 000
Correct Answer:
Verified
Q1: The legislation with the most significant influence
Q4: Internally generated goodwill is not recorded by
Q5: When assets are contributed to a partnership
Q6: Which of these is not a feature
Q7: If the variable capital balances method method
Q8: It is agreed in the partnership agreement
Q10: Mutual agency means:
A)Unlimited liability for partnership debts
B)Sharing
Q11: Fair value is defined in the accounting
Q12: Which event would not result in the
Q13: Which of these is not a provision
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