Sea Green Enterprises reports the following assets and liabilities on its balance sheet.

Net Book Value Fair Market Value

Assets $685,000 $1,027,500

Liabilities 205,500 205,500

Sea Green just lost a product liability suit with damages of $10,275,000 being awarded to the plaintiff. Although Sea Green will appeal the judgment, legal counsel indicates the judgment is highly unlikely to be overturned by the appellate court. The product liability insurance carried by Sea Green includes a payout ceiling of $6,165,000. Assume any net assets of the company will be used to reduce the judgment. For how much of the judgment is the entity and its owners liable if Sea Green is a sole proprietorship, a partnership, an LLC, a C corporation, and an S corporation? If an amount is zero, enter "0".

a. If the form of the business entity is a sole proprietorship, the owner is ultimately liable for __________ .

b. If the form of the business entity is a partnership, the partnership and the general partners are ultimately liable for_________________

c. If the form of the business entity is an LLC, legal liability for its debts. Therefore, the members of the LLC personal liability for the _______________

d. If the form of the business entity is a C corporation, the C corporation has limited liability of . ___________The plaintiff .

The shareholders of the C corporation for the remaining corporate debts. e. If the form of the business entity is an S corporation, the S corporation and its shareholders are treated like .

Answer rating: 100% (QA)

Answers The value of liability to be paid10275000 an... View the full answer