APA Corp. was forced into bankruptcy and is in the process of liquidating assets and paying claims. Unsecured claims will be paid at the rate of forty cents on the peso. ABC holds a P30,000 noninterest-bearing note receivable from APA collateralized by an asset with a book value of P35,000 and a liquidation value of P5,000. The amount to be realized by ABC on this note is

APA Corp. was forced into bankruptcy and is in the process of liquidating assets and paying claims. Unsecured claims will be paid at the rate of forty cents on the peso. ABC holds a P30,000 noninterest-bearing note receivable from APA collateralized by an asset with a book value of P35,000 and a liquidation value of P5,000. The amount to be realized by ABC on this note is

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 4CE

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Lugi Company was forced into bankruptcy and is in the process of liquidating assets and paying claims. Unsecured claims will be paid at the rate of forty cents on the peso. ABC holds a P30,000 non-interest bearing note receivable from Lugi collateralized by an asset with a book value of P35,000 and a liquidation value of P5,000. What amount will be realizable by ABC on this note?
APA, Inc. has forced into bankruptcy and has begun to liquidate. Unsecured claims will be paid at the rate of 40 cents on the peso. ABC Co. holds a non-interest bearing note receivable from APA in the amount of P100,000, collateralized by machinery with a liquidation value of P25,000. The total amount to be realized by ABC on this note receivable is:
A Corporation was forced into bankruptcy and is in the process of liquidatingassets and paying claims. The recovery percentage is estimated to be at 20%.The Corporation holds a notes receivable from a customer amounting to P100,000 collateralized by an asset with a book value of P60,000 and a liquidation value of P50,000. The amount to be realized by on this note is:
APA Bank holds a P500,000 note secured by a building owned by ABC company, which has filed for bankruptcy. If the property has book values of P600,000 and a fair market value of P450,000. The amount of secured claim is
The Statement of Affairs for Ivan Corporation shows that approximately P0.78 on the peso probably will be paid to unsecured creditors without priority. The corporation owes JICR Company P23,000 on a promissory note, plus accrued interest on P940. Inventories with a current fair value of P19,200 collateralized the note payable. Compute the amount that JICR Company should receive from Ivan Corporation assuming that the actual payments to unsecured creditors without priority consist of 78% of total claims.
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12. Seco Corp. was forced into bankruptcy and is in the process of liquidating assets and paying claims. Unsecured claims will be paid at the rate of forty cents on the dollar. Hale holds a $30,000 noninterest- bearing note receivable from Seco collateralized by an asset with a book value of $35,000 and a liquidation value of $5,000. The amount to be realized by Hale on this note is a. $5,000 b. $12,000 c. $15,000 d. $17,000
On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of P500,000. The company is threatened with a court suit if it would not settle its debt. The company entered into an agreement with the creditor to transfer real estate carried in the books of Empoy at P3million. The real estate has a current fair market value of P4.5million. What was the total amount of gain reported by Empoy as a result of debt restructuring? 2,500,000 1,500,000 1,000,000 500,000
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