OK Muffler Co. is insolvent. It has three employees to which it owes $7,000 in wages in total for the lastmonth, owes Canada Revenue Agency $15,000 and the CIBC $20,000. Jake is the sole director. What is hispersonal liability$49,000$7,000$15,000$22,000$29,000

Personal Liability: The duty of an individual to pay a debt or other obligation. If an individual…

OK Muffler Co. is insolvent. It has three employees to which it owes $7,000 in wages in nonth, owes Canada Revenue Agency $15,000 and the CIBC $20,000. Jake is the sole dir ersonal liability $49,000 $7,000 $15,000 $22,000 $29,000

OK Muffler Co. is insolvent. It has three employees to which it owes $7,000 in wages in nonth, owes Canada Revenue Agency $15,000 and the CIBC $20,000. Jake is the sole dir ersonal liability $49,000 $7,000 $15,000 $22,000 $29,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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OK Muffler Co. is insolvent. It has three employees to which it owes $7,000 in wages in total for the last
month, owes Canada Revenue Agency $15,000 and the CIBC $20,000. Jake is the sole director. What is his
personal liability
$49,000
$7,000
$15,000
$22,000
$29,000

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