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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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