You must label each answer with the number of question. Each question must have at least three sentence answers. There is no maximum sentence, use as many as you wish to thoroughly answer the question. All answers must be complete sentences using proper grammar and spelling. Sarah paid $50,000 for a franchise that covers the entire United States. She intended to sell individual franchises for the each state. Naturally, investors considering buying a franchise from her asked to see the financial statements of the business. Believing the true value of the franchise to be $500,000. She gives the franchise to Cindy. She borrow $500,000 from the bank. She pays $500,000 to the corporation for all of the stock. The corporation then uses the $500,000 to buy the franchise from Cindy. Cindy then pays the bank loan off with the $500,000. In the final analysis, Cindy is debt-free and out of the picture. Sarah owns all the corporation's stock, and the corporation owns the franchise. statements of the business. Believing the true value of the franchise to be $500,000. She gives the franchise to Cindy. She borrow $500,000 from the bank. She pays $500,000 to the corporation for all of the stock. The corporation then uses the $500,000 to buy the franchise from Cindy. Cindy then pays the bank loan off with the $500,000. In the final analysis, Cindy is debt-free and out of the picture. Sarah owns all the corporation's stock, and the corporation owns the franchise. The corporation's balance sheet lists a franchise acquired at a cost of $500,000. This balance sheet is the most valuable marketing tool. Requirements 1. Was this an ethical or unethical situation? Explain your reason. 2. Who can be harmed? Explain your reason. 3. How can they be harmed? Explain your reason. 4. What role does accounting play