If Kate invested $50,000 in a limited partnership and is personally responsible for $5,000 of debt, what is her capital at risk?

To determine Kate's capital at risk in her limited partnership investment, we need to consider the total amount she has invested along with her exposure to any debts associated with that investment.

Kate invested $50,000 in the limited partnership. This represents her equity in the investment. In addition to her equity, she is personally responsible for $5,000 of debt. In limited partnerships, capital at risk includes both the capital invested and any personal liability a partner has for partnership debts.

Therefore, Kate's total capital at risk is the sum of her investment and her share of debt she is responsible for, which would be $50,000 + $5,000. This totals to $55,000.

Thus, the correct answer reflects both the investment amount and the debt responsibility, leading to a comprehensive view of her financial exposure in the partnership.