Corporation DS owns assets worth $550,000 and has $750,000 outstanding debts. One of DS's creditors just informed

Question:

DS owns assets worth $550,000 and has $750,000 outstanding debts. One of DS's creditors just informed DS that it is writing off a $15,000 account receivable from DS because it believes the receivable is uncollectible. However, even with this debt discharge, DS is insolvent and has no net worth.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...