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What is the estimated recovery percentage of the partially secured creditors? a. 66.34% b. 69.53% c. 68.23% d. 67.21% What is the estimated loss on realization of assets? a. 66,000 b. 114,000 c. 30,000 d. 99,000 Vhat is the estimated payment to creditors without priority? а. 64,005 b. 34,792 с. 35,874 d. 65,125

What is the estimated recovery percentage of the partially secured creditors? a. 66.34% b. 69.53% c. 68.23% d. 67.21% What is the estimated loss on realization of assets? a. 66,000 b. 114,000 c. 30,000 d. 99,000 Vhat is the estimated payment to creditors without priority? а. 64,005 b. 34,792 с. 35,874 d. 65,125

FINANCIAL ACCOUNTING
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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Provide clear explanation: 1. The following transactions were ascertained during bankruptcy of BBB Co.: A mortgage payable of P192,500 is secured by building valued at P15,000 less than its carrying amount of P230,000. Note payable of P97,500 is secured by furniture and equipment with a carrying amount of P120,000 that is estimated to be 70% unrealizable. Assets not mentioned above have an estimated value of P62,500, an amount that is P15,000 below its carrying amount. Total liabilities not mentioned above total P96,000, including claims with priority of P18,500, interest on mortgage of 2,500 and interest on the note of 800. What is the estimated recovery percentage of the partially secured creditors? а. 66.34% b. 69.53% c. 68.23% d. 67.21% What is the estimated loss on realization of assets? а. 66,000 b. 114,000 С. 30,000 d. 99,000 What is the estimated payment to creditors without priority? 64,005 b. 34,792 с. 35,874 d. 65,125 а.
Transcribed Image Text:Provide clear explanation: 1. The following transactions were ascertained during bankruptcy of BBB Co.: A mortgage payable of P192,500 is secured by building valued at P15,000 less than its carrying amount of P230,000. Note payable of P97,500 is secured by furniture and equipment with a carrying amount of P120,000 that is estimated to be 70% unrealizable. Assets not mentioned above have an estimated value of P62,500, an amount that is P15,000 below its carrying amount. Total liabilities not mentioned above total P96,000, including claims with priority of P18,500, interest on mortgage of 2,500 and interest on the note of 800. What is the estimated recovery percentage of the partially secured creditors? а. 66.34% b. 69.53% c. 68.23% d. 67.21% What is the estimated loss on realization of assets? а. 66,000 b. 114,000 С. 30,000 d. 99,000 What is the estimated payment to creditors without priority? 64,005 b. 34,792 с. 35,874 d. 65,125 а.
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