Joe and Mia Are 50:50 Partners in the J&M Shop

Multiple Choice

Joe and Mia are 50:50 partners in the J&M Shop. The Shop has experienced financial difficulty over the past three years. After liquidating all its assets, the Shop still owes $15,000 to creditors. Joe has $20,000 of net worth and Mia has $5,000 of net worth. Creditors can collect

A) $10,000 from Joe and $5,000 from Mia.
B) $15,000 from Joe and $5,000 from Mia.
C) $15,000 from Joe and $0 from Mia.
D) $0 from Joe and $0 from Mia (since the partnership has no assets) .
E) either a or c.