Colleen Is Admitted to the Partnership of Elmore & Monticello

Multiple Choice

Colleen is admitted to the partnership of Elmore & Monticello and makes an initial capital contribution of $10,000.Two years later,when liabilities of the partnership exceed its assets by $20,000,the firm is dissolved.Paul had loaned the firm $5,000 six months before Colleen was admitted;Scott had loaned the firm $8,000 three months after Colleen was admitted.Colleen has:

A) no liability to Paul.
B) liability to Paul to the extent of her capital contribution and is personally liable to Scott.
C) no liability to Scott.
D) liability to Paul and Scott only to the extent of her capital contribution.