Incorporation: Clients considering structuring their new business as a corporation are aware that there are complex issues to consider when accounting for an incorporated entity. The clients often want information about the following key areas: A. Differentiate between various forms of bankruptcy and restructuring that the clients should understand. 1. Summarize the key points of interest if the company fell on hard times and had to file voluntary bankruptcy. What ethical implications should be considered when debating whether or not to file bankruptcy? 3. Illustrate hypothetical calculations that would be done to help creditors understand how much money they might receive if the company were to liquidate. Ensure all information is entered accurately. Refer to the illustration (Exhibit 13.2) in your textbook to view potential calculations.

Exhibit 13.2

Book Values Unsecured- Nonpriority Liabilities Liabilities and Stockholders' Equity Liabilities with priority: CHAPLIN COMPANY Statement of Financial Affairs June 30, 2020 Available for Unsecured Book Values Creditors Assets Pledged with fully secured creditors