In what circumstances might directors be held personally responsible for debts incurred by a company?

If the company is registered as an unlimited liability company

Explanation:

There are two different types of company namely limited and unlimited liability company.

Companies registered under limited liability company , as the name "limited" implies , the liability of the directors is limited to their shares.

This provides immunity to the directors against any incurred debt by the company as the company is seen as a different entity. such immunity is not provided in unlimited liability company as their liabilities is not limited to contributed shares under the registration acts guiding such companies.

This means that the directors of the unlimited company might be held responsible for any debt that the assets of the company can not cater for .The directors might forfeit personal assets in settlement of company's debt.

$355000

Explanation:

Based on the information given in the question, the balance in the investment account at December 31, 2021, will be:

15% of Anderson Corporation acquired = $105,000

Add: Additional 25% of Anderson Corp. purchased = $200,000

Add: Share of income 2021 = $200,000 × 40% = $80,000

Less: Dividend paid = $75,000 × 40% = ($30,000)

Balance in the investment = $355,000