How much is the estimated recovery percentage?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How much is the estimated recovery percentage?
Transcribed Image Text:The following information was gathered from the book of Masbate Corporation which is currently undergoing
bankruptcy proceedings:
➤ Note payable of P97,500 is secured by furniture and equipment with a carrying amount of P120,000 that
is estimated to be 75% realizable
➤ A mortgage payable of P192,500 is secured by building valued at P35,000 less than its carrying amount
of P230,000
Assets not mentioned above have estimated value of P62,500, an amount that is P15,000 above carrying
amount
Total liabilities not mentioned above total p96,000, including claims with priority of P18,500
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