Joshua,Rachel,and Daniel Formed an LLC to Manage Their Accounting Business

question 19

Multiple Choice

Joshua,Rachel,and Daniel formed an LLC to manage their accounting business.Joshua contributed $20,000 to the LLC.Rachel and Daniel contributed $40,000 each.A year later,the LLC needed capital injection and Joshua lent a credit of $50,000.However,nothing could save the LLC and it entered bankruptcy and got dissolved.Joshua was the only creditor of the LLC.If a total of $50,000 was obtained after the sale of all the assets of the dissolved LLC,how much will Rachel get?

• A) $0
• B) $10,000
• C) $50,000
• D) $25,000

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Definitions:

Physical And Legal Custody

Terms that refer to the physical residence of a child and the legal right to make decisions regarding the child's upbringing, respectively.

Custody

A court-mandated ruling regarding which divorced parent will have the primary responsibility for the children’s upbringing.

Separation Agreement

A legal document that outlines the terms of a separation between married or common-law partners, detailing arrangements such as asset division, child custody, and support payments.

Child Support

Financial contributions required by law to be made by a non-custodial parent to support their minor children.