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Your company, a sole proprietorship, has assets of $34,583 and liabilities of $55,867. you decide to liquidate the company. assuming you can sell the assets at their listed value, how much will you be personally liable for?

User Geekchic
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2 Answers

7 votes

Answer:

A : 21,284

Credits go to the person above me.

Step-by-step explanation:

VB Business 2021

Your company, a sole proprietorship, has assets of $34,583 and liabilities of $55,867. you-example-1
User Mrakodol
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4 votes

A sole proprietor is personally liable for the liabilities which remain unpaid after the utilization of assets. In the given case the sole proprietorship has total assets of $34,583 and liabilities of $55,867. It means total assets can be used to pay off $34,583 out of total liabilities of $55,867 and the proprietor shall be personally liable for the balance liabilities= 55867-34583 = $21,284

Hence, you are personally liable for $21,284




User Mayoares
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