How much must be received by the creditors, respectively
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The administrative expenses are for trustees and other costs of administering the debtor corporation’s estate. How much must be received by the creditors, respectively?
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- A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values):a. This company owes $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect? b. This company owes $120,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $90,000. How much money can this bank expect to collect?Mallory Corporation is being liquidated. On May 1, 20x5, you are appointed the court's trustee for the liquidation. The book values for assets and liabilities, on May 1, 20x5, were as follows: Cash Accounts receivable (net) Inventories Land and building (net) Machinery (net) Accounts payable Salaries payable Income tax payable Trustee's fee payable Mortgage payable Bank loan payable P 4,000 80,000 200,000 340,000 100,000 180,000 60,000 14,000 20,000 240,000 90,000 During May through July of 20x5, the following occurred: the mortgage is secured by the land and building, and the bank loan is secured by the machinery. The accounts payable are secured by the inventories; three-fourths of the accounts receivable were collected. Of the remaining accounts, P10,000 are believed to be uncollectible; the inventories were sold for P170,000; the land and building were sold for P20,000 and the assumption of the mortgage. The machinery sold for P70,000, and the proceeds were remitted to the bank:…Ataway Company has severe financial difficulties and is considering filing a bankruptcy petition. At this time, it has the following assets and liabilities. The assets are stated at net realizable value. Assets (pledged against debts of $70,000) . . . . . . . . . . . . . . . . $116,000Assets (pledged against debts of $130,000) . . . . . . . . . . . . . . . . . 50,000Other assets . . . . . . . . . . . . . . . 80,000Liabilities with priority . . . . . . . 42,000Other unsecured creditors . . . 200,000 In a liquidation, how much money would be paid on the partially secured debt?
- Provide clear explanation: 1. The following transactions were ascertained during bankruptcy of BBB Co.: A mortgage payable of P192,500 is secured by building valued at P15,000 less than its carrying amount of P230,000. Note payable of P97,500 is secured by furniture and equipment with a carrying amount of P120,000 that is estimated to be 70% unrealizable. Assets not mentioned above have an estimated value of P62,500, an amount that is P15,000 below its carrying amount. Total liabilities not mentioned above total P96,000, including claims with priority of P18,500, interest on mortgage of 2,500 and interest on the note of 800. What is the estimated recovery percentage of the partially secured creditors? а. 66.34% b. 69.53% c. 68.23% d. 67.21% What is the estimated loss on realization of assets? а. 66,000 b. 114,000 С. 30,000 d. 99,000 What is the estimated payment to creditors without priority? 64,005 b. 34,792 с. 35,874 d. 65,125 а.The following information are related to JVCD Corporation which is undergoing liquidation: a. A bank loan amounting to P455,000 is secured by inventories with book value of P525,000 and net realizable value of P350,000. b. Of the P1,120,000 accounts payable, P343,000 is secured by accounts receivable amounting to P413,000 which is 10% uncollectible. c. Property and equipment costing P875,000 and which is depreciated by 20% has a net realizable value of P588,000. d. Other unrecorded liabilities are accrued interest payable on bank loan, P45,500; salaries payable, P112,000; taxes payable, P63,000 and trustee’s fee, P52,500. e. Cash available before liquidation amounts to P87,500. Compute for the estimated deficiency to unsecured creditors. A. 450,800 B. 882,000 C. 927,500 D. 980,000How much is the estimated recovery percentage?
- The following information was gathered from the books of Gorgeous Company 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 carrying amount of P230,000· Assets not mentioned above have an 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 How much is the amount available to Unsecured Creditors?PAYLESS Corporation filed a petition of bankruptcy on January 2011. On March 15, 2011 the trustee provided the following information about the corporation's financial affairs. Book values Estimated Realizable Values Assets P 200, 000 1, 000, 000 1, 500, 000 2. 500, 000 P 5,200, 000 P 200, 000 750, 000 750, 000 2, 800, 000 Cash Accounts receivable, net Inventories Plant assets – net Total Liabilities P 500, 000 1, 500, 000 1, 000, 000 2, 200, 000 P 5. 200. 000 4. Determine the amount expected to be available for unsecured claims. Liability for priority claims Accounts payable – unsecured Note payable, secured by accounts receivable Mortgage payable, secured by all plant assets Total A. P1, 500, 000 B. P900, 000 С. Р800, 000 D. P1, 050, 000 5. Determine the expected recovery per peso of unsecured claims. A. PO.60 B. PO.5720 С. РО.70 D. PO.6350 6. The amount of recovery to unsecured accounts payable. A. P855, 000 C. P1, 290, 000 B. P900, 000 D. P600, 0001. What is the amount of net free assets? 2. What is the estimated loss n asset realization? 3. What is the estimated recovery for the partially secured creditors? 4. What is the estimated recovery percentage for the notes payable?
- SG Company is bankrupt and has undergone corporate liquidation. Presented below is its statement of financial position before the start of liquidation (see attached photo):· Liquidation expenses amounting to P600,000 were paid.· The loan payable is secured by the Machinery with fair value of P300,000.· The mortgage payable is secured by the building.· At the end of liquidation, the holder of loan payable received P340,000.Using the information of SG Company, what is the fair value of the building?PAYLESS Corporation filed a petition of bankruptcy on January 2011. On March 15, 2011 the trustee provided the following information about the corporation's financial affairs. Book values Estimated Realizable Values Assets P 200, 000 P 200, 000 750, 000 750, 000 2, 800, 000 Cash Accounts receivable, net Inventories 1, 000, 000 1, 500, 000 2, 500, 000 P 5.200.000 Plant assets – net Total Liabilities P 500, 000 1, 500, 000 1, 000, 000 2, 200, 000 P 5. 200, 00Q 4. Determine the amount expected to be available for unsecured claims. Liability for priority claims Accounts payable – unsecured Note payable, secured by accounts receivable Mortgage payable, secured by all plant assets Total A. P1, 500, 000 В. Р900, 000 C. P800, 000 D. P1, 050, 000Ataway Company has suffered severe financial difficulties and is considering filing a bankruptcy petition. It has the following assets and liabilities. The assets are stated at net realizable value. Assets (pledged against debts of $78,000) Assets (pledged against debts of $146,000) Other assets Liabilities with priority Other unsecured creditors $ 132,000 58,000 88,000 53,200 208,000 In a liquidation, how much money would be paid on the partially secured debt? Payment on partially secured debt $ 82,667
