Sarah G. Company is under court-supervised liquidation due to its insolvency. The court appointed liquidator has provided the following data after conducting an inventory of Sarah G’s assets and liabilities: · The total assets which are not used as security for any liability amounted to P5M while the total unsecured liabilities amounted to P20M. · The total assets which are used as collateral or security for corporate obligations amounted to P10M. ¾ of these assets secure a mortgage payable with book value of P2M including interest while the remainder secure a note payable with the book value of P3.5M including interest. · Salaries payable amounted to P2M while taxes due government amounted to P1M. What is the amount received by partially secured creditors?
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Sarah G. Company is under court-supervised liquidation due to its insolvency. The court appointed liquidator has provided the following data after conducting an inventory of Sarah G’s assets and liabilities:
· The total assets which are not used as security for any liability amounted to P5M while the total unsecured liabilities amounted to P20M.
· The total assets which are used as collateral or security for corporate obligations amounted to P10M. ¾ of these assets secure a mortgage payable with book value of P2M including interest while the remainder secure a note payable with the book value of P3.5M including interest.
· Salaries payable amounted to P2M while taxes due government amounted to P1M.
What is the amount received by partially secured creditors?
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