Which of the following statements is false? a. indirect costs are typically much smaller than the direct costs of bankruptcy. b. bankruptcy protection can be used by management to delay the liquidation of a firm that should beshut down. c. because many aspects of the bankruptcy process are independent of the size of the firm, the costsare typically higher, in percentage terms, for smaller firms. d. aside from the direct legal and administrative costs of bankruptcy, many other indirect costs areassociated with financial distress (whether or not the firm has formally filed for bankruptcy). further, indirect costs of bankruptcy are difficult to measure accurately.

On december 31, 2016, the decarreau, andrew, and bui partnership had the following fiscal year-end balance sheet: cash $10,000accounts receivable $20,000inventory $25,000plant assets - net $30,000loan to decarreau $18,000total assets $103,000accounts payable $14,000loan from bui $15,000decarreaua, capital (20%) $32,000andrew, capital (10%) $23,000bui, capital (70%) $19,000total liab./equity $103,000the percentages shown are the residual profit and loss sharing ratios. the partners dissolved the partnership on january 1, 2017, and began the liquidation process. during july the following events occurred: * receivables of $18,000 were collected.* all inventory was sold for $15,000.*all available cash was distributed on january 31, except for$8,000 that was set aside for contingent expenses. the book value of the partnership equity (i. e., total equity of the partners) on december 31, 2016 isa. $58,000b. $71,000c. $66,000d. $81,000