Passage Summary: A company has a deal where they go bankrupt if they have to pay back a loan, which happens if they make less than a million dollars. They lied about making a million, so the author says they're going bust.

Conclusion: Acme will have to declare bankruptcy.

Reasoning: Acme's earnings were overstated, and falling below the $1 million threshold triggers immediate loan repayment, which leads to bankruptcy.

Analysis: There is a significant logical gap here: just because Acme overstated its earnings doesn't mean the actual earnings fell below the $1 million threshold. For the conclusion to hold, we must assume that the corrected, lower earnings are indeed less than $1 million. If they overstated $5 million as $10 million, they still wouldn't trigger the repayment clause, so look for an answer that confirms the actual earnings are below the limit.