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Grace borrowed $106,000 from friends and family to start her company (a sole proprietorship). Business has been poor recently, and Grace has decided to cease
Grace borrowed $106,000 from friends and family to start her company (a sole proprietorship). Business has been poor recently, and Grace has decided to cease operations and liquidate the firm. She expects to obtain $97,800 from selling the assets of the company. Suppose Grace obtains only $97,800 when she sells all the assets of the firm, How much money would the debt holders receive if the business were a corporation? If it were a sole proprietorship? How much would Grace receive in each case? (Enter amounts received as positive, e.g. 5,845 and amounts paid as negative with either a negative sign preceding the number e.g. -5,845 or parentheses e.g. (5,845).) Grace receive/(pay) Debt holders receive/(pay) Corporation Sole proprietorship
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