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?

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Business

Emmanuel Garrett

1 April, 18:56

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?

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Clara Anthony · Answer 1

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