Five accountants A,B,C,D,E registered their general partnership as a Limited Liability Partnership Accountant D negligently failed to file a clients tax return on time, costing the client $10,000 in penalties Who must pay this penalty a It depends on which of the other accountants agreed to D joining the partnership in the beginning b Each accountant must pay their share of $2,000 The LLP does not owe anything as it is judgment proof entity c Accountant D is liable for 100 of the loss The remaining accountants are not liable d Accountant D and the LLP are jointly and severally liable, so they will split the cost, each paying $5,000

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Question: Five accountants - A,B,C,D,E - registered their general partnership as a Limited Liability Partnership. Accountant D negligently failed to file a clients tax return on

Five accountants - A,B,C,D,E - registered their general partnership as a Limited Liability Partnership. Accountant D negligently failed to file a clients tax return on time, costing the client $10,000 in penalties. Who must pay this penalty?

	a.	It depends on which of the other accountants agreed to D joining the partnership in the beginning.
	b.	Each accountant must pay their share of $2,000. The LLP does not owe anything as it is judgment proof entity.
	c.	Accountant D is liable for 100% of the loss. The remaining accountants are not liable
	d.	Accountant D and the LLP are jointly and severally liable, so they will split the cost, each paying $5,000.

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