ABC Company is beginning the process of liquidation. ABC has prepared a statement of financial affairs that discloses the following data: Assets pledged with secured creditors $ 210,000 Secured liabilities 125,000 Assets pledged with partially secured creditors 290,000 Free assets (not including excess to be received from assets pledged on secured liabilities) 225,000 Unsecured liabilities with priority 121,000 Unsecured liabilities 450,000 What percentage of unsecured liabilities will be paid?

ABC Company is beginning the process of liquidation. ABC has prepared a statement of financial affairs that discloses the following data: Assets pledged with secured creditors $ 210,000 Secured liabilities 125,000 Assets pledged with partially secured creditors 290,000 Free assets (not including excess to be received from assets pledged on secured liabilities) 225,000 Unsecured liabilities with priority 121,000 Unsecured liabilities 450,000 What percentage of unsecured liabilities will be paid?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assets pledged with secured creditors	$ 210,000
Secured liabilities	125,000
Assets pledged with partially secured creditors	290,000
Free assets (not including excess to be received from assets pledged on secured liabilities)	225,000
Unsecured liabilities with priority	121,000
Unsecured liabilities	450,000

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ABC Company is beginning the process of liquidation. ABC has prepared a statement of financial affairs that discloses the following data: Assets pledged with secured creditors $ 210,000 Secured liabilities 125,000 Assets pledged with partially secured creditors 290,000 Free assets (not including excess to be received from assets pledged on secured liabilities) 225,000 Unsecured liabilities with priority 121,000 Unsecured liabilities 450,000 ABC owes $45,000 to Wallace Company, an unsecured creditor (without priority). How much money can Wallace Company expect to collect from ABC?
Pitch Co. is undergoing liquidation. Information on Pitch Co. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 500,000 300,000 1,280,000 1,600,000 3,100,000 Free assets 2,880,000 LIABILITIES 400,000 480,000 Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 1,000,000 1,050,000 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 2. How much can the "partially secured creditors" expect to recover from their claims? а. 432,000 b. 445,600 c. 510,000 d. 548,000
ABC Co. is undergoing liquidation. Information on ABC Co.'s assets and liabilities is shown below: ASSETS Book value Realizable value Assets pledged to fully secured creditors Assets pledged to partially secured creditors 360,000 480,000 208,000 192,000 Free assets 600,000 576,000 1,168,000 1,248,000 LIABILITIES Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 288,000 288,000 384,000 240,000 432,000 384,000 240,000 432,000 1,344,000 1,344,000 How much can the partially secured creditors expect to recover from their claims?
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The following were taken from the statement of affairs of DUTCHMEN Corp: Assets pledged for fully secured creditors (estimated market value P150,000) P180,000 Assets pledged for partially secured creditors (estimated market value P104,000) 148,000 Free Assets (estimated market value 80,000) 14,000 Partially secured creditors 120,000 Fully secured creditors 60,000 Unsecured creditors withour priority 224,000 The free assets were those assets other than the assets pledged to fully and partially secured creditors. The Unsecured creditors without priority were those creditors with no assets secured to…
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On December 18, 2020, the statement of affairs of Facebook Company, which is in bankruptcy liquidation, included in the following:Assets pledges for fully secured liabilities P100,000Assets pledged for partially secured liabilities P40,000Free Assets P120,00Fully secured liabilities P80,000Partially Secured Liabilities P50,000Unsecured Liabilities with Priority P60,000Unsecured Liabilities without Priority P90,000Compute the estimated amount to be paid to:Fully Unsecured Partially UnsecuredSecured Liabilities Secured LiabilitiesLiabilities w/ Priority Liabilities W/out PriorityA . P80,000 P60,000 P50,000 P70,000B. P64,000 P60,000 P48,000 P88,000C. P80,000 P48,000 P60,000 P72,000D. P80,000 P60,000 P48,000 P72,000
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