The creditors of the RR Corp. agreed to a liquidation based on the statement of affairs, suggested that unsecured creditors, without priority would receive approximately P.60 on the peso. The unsecured creditors are interested in determining whether the preliminary estimate still seems appropriate. The trustee was originally assigned noncash asset for P1,480,000 and creditor claims as follows: fully secured, P670,000; partially secured, P400,000; unsecured with priority, P200,000 and unsecured without priority, P320,000. Assets with book value of P45,000 and unsecured liabilities, without priority, of P35,000 were subsequently discovered. Assets with a total book value of P740,000 were sold for P715,000 net. Fully secured liabilities of P410,000 and partially secured liabilities of P280,000 were paid. Remaining liquidation expenses were estimated to be P30,000. Assume the remaining noncash assets have an estimated net realizable value as follows: Assets raceable to fully secured creditors P240,000; Assets traceable to partially secured creditors 110,000; Remaining assets P382,000. Determining the revised estimate of the dividend to be eceived by unsecured creditors without priority (present your answer in percentage- assuming for /3 present it as 33.33% or 2/3 present it as 66.67% or if ½ 50%)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The creditors of the RR Corp. agreed to a liquidation based on the statement of affairs, suggested
that unsecured creditors, without priority would receive approximately P.60 on the peso. The
unsecured creditors are interested in determining whether the preliminary estimate still seems
appropriate. The trustee was originally assigned noncash asset for P1,480,000 and creditor claims as
follows: fully secured, P670,000; partially secured, P400,000; unsecured with priority, P200,000 and
unsecured without priority, P320,000. Assets with book value of P45,000 and unsecured liabilities,
without priority, of P35,000 were subsequently discovered. Assets with a total book value of
P740,000 were sold for P715,000 net. Fully secured liabilities of P410,000 and partially secured
liabilities of P280,000 were paid. Remaining liquidation expenses were estimated to be P30,000.
Assume the remaining noncash assets have an estimated net realizable value as follows: Assets
traceable to fully secured creditors P240,000; Assets traceable to partially secured creditors
P110,000; Remaining assets P382,000. Determining the revised estimate of the dividend to be
received by unsecured creditors without priority (present your answer in percentage- assuming for
1/3 present it as 33.33% or 2/3 present it as 66.67% or if ½ 50%)
Transcribed Image Text:The creditors of the RR Corp. agreed to a liquidation based on the statement of affairs, suggested that unsecured creditors, without priority would receive approximately P.60 on the peso. The unsecured creditors are interested in determining whether the preliminary estimate still seems appropriate. The trustee was originally assigned noncash asset for P1,480,000 and creditor claims as follows: fully secured, P670,000; partially secured, P400,000; unsecured with priority, P200,000 and unsecured without priority, P320,000. Assets with book value of P45,000 and unsecured liabilities, without priority, of P35,000 were subsequently discovered. Assets with a total book value of P740,000 were sold for P715,000 net. Fully secured liabilities of P410,000 and partially secured liabilities of P280,000 were paid. Remaining liquidation expenses were estimated to be P30,000. Assume the remaining noncash assets have an estimated net realizable value as follows: Assets traceable to fully secured creditors P240,000; Assets traceable to partially secured creditors P110,000; Remaining assets P382,000. Determining the revised estimate of the dividend to be received by unsecured creditors without priority (present your answer in percentage- assuming for 1/3 present it as 33.33% or 2/3 present it as 66.67% or if ½ 50%)
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