Fran Finery’s boutique has assets of $100,000 and liabilities of $140,000. Fran’s major creditor cancels $50,000 in liabilities. Discuss the tax ramifications of this forgiveness of debt. Assume the majority of Fran’s assets are depreciable property. Discuss the tax ramifications facing the Finery Corporation assuming it is not in bankruptcy. Then, discuss the ramifications assuming the Finery Corporation is in bankruptcy.