A statement of financial affairs created for an insolventcorporation that is beginning the process of liquidation disclosesthe following data (assets are shown at net realizable values): Assets pledged withfully secured creditors $ 220,000 Fully securedliabilities 160,000 Assets pledged withpartially secured creditors 390,000 Partially securedliabilities 510,000 Assets notpledged 310,000 Unsecuredliabilities with priority 182,800 Accounts payable(unsecured) 400,000 a. This company owes $13,000 to an unsecured creditor (withoutpriority). How much money can this creditor expect to collect? b. This company owes $120,000 to a bank on a note payable that issecured by a security interest attached to property with anestimated net realizable value of $90,000. How much money can thisbank expect to collect?
A statement of financial affairs created for an insolventcorporation that is beginning the process of liquidation disclosesthe following data (assets are shown at net realizable values):
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Assets pledged withfully secured creditors |
$ |
220,000 |
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Fully securedliabilities |
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160,000 |
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Assets pledged withpartially secured creditors |
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390,000 |
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Partially securedliabilities |
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510,000 |
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Assets notpledged |
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310,000 |
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Unsecuredliabilities with priority |
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182,800 |
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Accounts payable(unsecured) |
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400,000 |
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