dditional information: The following information was determined before the start of the liquidation process: a. Only 76% of the accounts receivable is collectible. b. The note receivable is fully collectible, and in addition interest of ₱40,000 is expected to be collected. c. The inventory has an estimated selling price of ₱1,680,000 and estimated costs to sell of ₱40,000. d. The prepaid assets are non-refundable. e. The land and building have fair values of ₱8,000,000 and ₱3,200,000, respectively. However, Andrix expects to sell both assets at a single price of ₱10,400,000. Costs to sell are negligible because the prospective buyer agrees to shoulder all costs relating to the transfer of the property. f. The equipment is expected to be sold at a net selling price of ₱800,000. g. Administrative expenses of ₱120,000 are expected to be incurred in the liquidation. h. The accrued expenses include accrued salaries of ₱100,000. i. Interest of ₱60,000 is expected to be paid on the loan. j. All the other liabilities are stated at their expected net settlement amounts. 16. How much are the total assets pledged to partially secured creditors? a. 800,000 b. 3,140,000 c. 1,200,000 d. 400,000 17. How much are the total unsecured liabilities with priority? a. 1,620,000 b. 220,000 c. 1,520,000 d. 100,000 18. How much are the total unsecured liabilities without priority? a. 4,748,000 b. 4,884,000 c. 4,904,000 d. 5,184,000 19. What is the estimated recovery percentage of unsecured creditors without priority? a. 75.85% c. 70% b. 31.71% d. 24.15%
Additional information:
The following information was determined before the start of the liquidation process:
a. Only 76% of the
b. The note receivable is fully collectible, and in addition interest of ₱40,000 is expected to be
collected.
c. The inventory has an estimated selling price of ₱1,680,000 and estimated costs to sell of ₱40,000.
d. The prepaid assets are non-refundable.
e. The land and building have fair values of ₱8,000,000 and ₱3,200,000, respectively. However,
Andrix expects to sell both assets at a single price of ₱10,400,000. Costs to sell are negligible
because the prospective buyer agrees to shoulder all costs relating to the transfer of the property.
f. The equipment is expected to be sold at a net selling price of ₱800,000.
g. Administrative expenses of ₱120,000 are expected to be incurred in the liquidation.
h. The accrued expenses include accrued salaries of ₱100,000.
i. Interest of ₱60,000 is expected to be paid on the loan.
j. All the other liabilities are stated at their expected net settlement amounts.
16. How much are the total assets pledged to partially secured creditors?
a. 800,000
b. 3,140,000
c. 1,200,000
d. 400,000
17. How much are the total unsecured liabilities with priority?
a. 1,620,000
b. 220,000
c. 1,520,000
d. 100,000
18. How much are the total unsecured liabilities without priority?
a. 4,748,000
b. 4,884,000
c. 4,904,000
d. 5,184,000
19. What is the estimated recovery percentage of unsecured creditors without priority?
a. 75.85% c. 70%
b. 31.71% d. 24.15%
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