Prompt: For Milestone One, draft a short paper covering Section I, Part A of the final project. In the paper, discuss the issue of bankruptcy, both voluntary and forced, as well as liquidation. Specifically, the following critical elements must be addressed:

I. 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?

2. Identify the key areas of concern if the company fell on hard times and their creditors forced them into bankruptcy. What defenses are available in this situation?

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.

Rubric Guidelines for Submission: Your paper must be submitted as a 2- to 3-page Word document (excluding the title page, reference page, and spreadsheet addendums). Use double spacing, 12-point Times New Roman font, one-inch margins, and at least two academic sources (in addition to your textbook) cited in APA format. Your accompanying spreadsheets must be submitted as Microsoft Excel files.