Aisha and Chantel form a general partnership. On March 1st, Carlo is admitted as a new partner and makes a capital contribution of $100,000. As of March 1st the partnership had $100,000 in debt. On May 1st, the partnership takes out a loan for $500,000. Which of the following statements is true?

A.

Carlo is not liable for neither the $100,000 debt nor the $500,000 loan.

B.

Carlo's capital contribution will go to paying the $100,000 debt and Carlo will become personally liable for the $500,000 loan.

C.

Carlo can get out of paying the $500,000 loan by withdrawing from the partnership by June 1st.

D.

Carlo is not liable for the $100,000 debt, but would be personally liable for the $500,000 loan.

E.

Carlo's capital contribution will go to paying the $100,000 debt, but Carlo is not personally liable for the $500,000 loan.

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