Jim Braun Has Been a Partner in a Real Estate

Multiple Choice

Jim Braun has been a partner in a real estate investment partnership with Alicia Kaynes for 10 years. When the real estate market took a downward turn, one of their investments in a strip mall became a cash drain. Jim refused to contribute any more cash and withdrew from the partnership. Alicia was left to manage the property. Before she could sell it, Alicia had put in $125,000 into the strip mall property. Following the sale, Alicia demanded one-half of the $125,000 from Jim. Jim said he is not liable because he left the partnership.

A) Jim is correct; he withdrew and his liability ended.
B) Alicia is correct; Jim owes her his share of what she paid.
C) Neither is correct; how much Jim owes depends on when he withdrew.
D) None of the above