PROBLEMS 1. The following information was taken from the Statement of affairs filed by LIQUIDATED Corporation to the bankruptcy court on July 31, 2014: LIQUIDATED Corporation Statement of Affairs July 31, 2014 Book value Assets Realizable Values- Liability Offsets for Secured Creditors Realizable values Available for Unsecured Creditors Pledge for Fully Secured Creditors Machineries and Equipment – net Less: Mortgage payable Interest payable Pledge for Priority and Secured Creditors Merchandise Inventory Less: Notes payable to bank Interest payable Available for Priority and Unsecured Creditors P750, 000 P600, 000 P500, 000 50. 000 550. 000 P50, 000 375, 000 P290, 000 P 300, 000 30, 000 330, 000 10, 800 150, 000 220, 000 2, 200 Cash Accounts Receivable 10, 800 91, 200 250, 000 Land Intangible assets Total available for priority and unsecured 402, 000 132. 250 269, 750 145. 250 P415. 000 Creditors Less: Priority liabilities Total available for unsecured creditors Estimated deficiency 1.508. 000 Liabilities and Shareholders' Equity Book values Secured and Unsecured Claims Priority Claims Non-priority P 65, 500 58, 000 8, 750 Priority Liabilities Wages payable Property taxes payable Administrative Expenses Payable P 65, 500 58, 000 8. 750 P132. 250 500, 000 50, 000 Fully Secured Creditors Mortgage payable Interest payable 500, 000 50, 000 P80. 000 300, 000 30, 000 Partially Secured Creditors Notes payable - bank Interest payable 300, 000 30. 000 P 330, 000 290. 000 Less: Accounts receivable pledge P40, 000 210, 000 165, 000 Unsecured Creditors Accounts payable Notes payable to suppliers 210, 000 165, 000 450, 000 (329. 250) P1. 308. 000 Stockholders' Equity Capital stock Retained eamings P 415. 000 1. How much each of the creditors would receive after liquidation? Partially Secured P290, 000 316, 000 316, 000 290, 000 Priority Creditors P132, 250 132, 250 132, 250 132, 250 Non-Priority Creditors P243, 750 263, 500 243, 750 263, 500 Fully Secured A. P550, 000 В. 500, 000 C. 550, 000 D. 500, 000