Shannon Has Just Become a Partner in a & R

question 19

Multiple Choice

Shannon has just become a partner in A & R Accounting Partnership. Her capital contribution is $10,000, which she paid from her savings. Shannon:

• A) has no liability for partnership debts that existed at the time of her admission as a partner.
• B) is liable only to the extent of her capital contribution for partnership debts that occur after her admission as a partner.
• C) has unlimited personal liability for all partnership debts regardless of whether they were incurred before or after she became a partner.
• D) has unlimited personal liability for all partnership obligations that occur after she became a partner; she has liability to the extent of her capital contribution for obligations that existed at the time she became a partner.

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