Paul Invests $10,000 Cash in an Equipment Leasing Activity for a 15

Multiple Choice

Paul invests $10,000 cash in an equipment leasing activity for a 15% ownership share in the business.The remaining 85% owner is Amanda.Amanda contributes $10,000 and personally borrows $75,000 that she also invests in the business.What are the at-risk amounts for Paul and Amanda? $\begin{array}{llll}&\text { Paul }&\text { Amanda }\\a.&\$ 10,000 & \$ 10,000 \\b.&\$ 10,000 & \$ 85,000 \\c.&\$ 10,00 0 & \$ 73,750 \\d.&\$ 21,250 & \$ 73,750\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D