The Abra Company owes P200,000 on a note payable plus P8,000 ininterest to its bank. The note is scoured by inventory with a book value ofP160,000 and a fair value of P120,000. What amount will the bank receivedif unsecured creditors receive 75% of their claims?At the time of corporate liquidation, the redeemable preferredstockholders received only the partial amount of the redemption value oftheir shares of stocks. Which of the creditors of this dissolved andliquidated corporation received the full amount of their claims?Fully secured creditors onlyFully secured creditors and unsecured creditors with priority onlyPartially secured creditors and unsecured creditors without priority onlyAll the creditors of the corporation

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The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is scoured by inventory with a book value of P160,000 and a fair value of P120,000. What amount wll the bank received if unsecured creditors receive 75% of their claims?

The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is scoured by inventory with a book value of P160,000 and a fair value of P120,000. What amount wll the bank received if unsecured creditors receive 75% of their claims?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Abra Company owes P200,000 on a note payable plus P8,000 in
interest to its bank. The note is scoured by inventory with a book value of
P160,000 and a fair value of P120,000. What amount will the bank received
if unsecured creditors receive 75% of their claims?
At the time of corporate liquidation, the redeemable preferred
stockholders received only the partial amount of the redemption value of
their shares of stocks. Which of the creditors of this dissolved and
liquidated corporation received the full amount of their claims?
Fully secured creditors only
Fully secured creditors and unsecured creditors with priority only
Partially secured creditors and unsecured creditors without priority only
All the creditors of the corporation

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