Generally when a firm is considered bankrupt,the liquidation value of the assets is less than the book value of the assets.

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This is because the book value of assets is determined based on their historical cost and may not reflect their current market value. In a bankruptcy scenario, assets may be sold at a discount to their book value in order to generate money to pay off creditors.

Generally When a Firm Is Considered Bankrupt,the Liquidation Value of the Assets