Problem: Merideth Harper has invested $25,000 in Southwest Development Company. The firm has recently declared bankruptcy and has $60,000 in unpaid debts. Explain the nature of payments, if any, by Ms. Harper in each of the following situations.
1. Southwest Development Company is a sole proprietorship owned by Ms. Harper.
2. Southwest Development Company is a 50-50 partnership of Ms. Harper and Christopher Black.
3. Southwest Development Company is a corporation.