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Luca is admitted to the partnership of Lockhart & Lee and makes an initial capital...

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Accounting

Luca is admitted to the partnership of Lockhart & Lee and makes an initial capital contribution of $15,000. Two years later, when liabilities of the partnership exceed its
assets by $20,000, the firm is dissolved. Lockhart had loaned the firm $5,000 six months before Luca was admitted; Lee had loaned the firm $8,000 three months after
Luca was admitted. Luca has:
a. liability to Lockhart to the extent of her capital contribution and is personally liable to Lee.
b. liability to Lockhart and Lee only to the extent of her capital contribution.
c. no liability to Lee.
d. no liability to Lockhart.
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