1. Kent Co. filed a voluntary bankruptcy petition on August 15, 2020, and the statement o affairs reflected the following amounts: f Book Value Estimated Current Value Assets Assets pledged with fully secured creditors Assets pledged with partially secured creditors P300,000 P370,000 180,000 120,000 Free Assets 420.000 P900,000 320.000 P810,000 Liabilities Liabilities with priority Fully secured creditors P70,000 260,000 Partially secured creditors 200,000 Unsecured creditors 540.000 P1,070,000 Assume that the assets are converted to cash at the estimated current values and the business is liquidated. a. What amount of cash will be available to pay unsecured non-priority claims?

1. Kent Co. filed a voluntary bankruptcy petition on August 15, 2020, and the statement o affairs reflected the following amounts: f Book Value Estimated Current Value Assets Assets pledged with fully secured creditors Assets pledged with partially secured creditors P300,000 P370,000 180,000 120,000 Free Assets 420.000 P900,000 320.000 P810,000 Liabilities Liabilities with priority Fully secured creditors P70,000 260,000 Partially secured creditors 200,000 Unsecured creditors 540.000 P1,070,000 Assume that the assets are converted to cash at the estimated current values and the business is liquidated. a. What amount of cash will be available to pay unsecured non-priority 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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Kent Co. filed a voluntary bankruptcy petition on August 15, 2008, and the statement of affairs reflects the following amounts: Assets Book value Estimated Market value Pledged with fully secured creditors P300,000 P370,000 Pledged with partially secured creditors 180,000 120,000 Free Assets 420,000 320,000 Liabilities With priority 70,000 Fully secured 260,000 Partially secured 200,000 Unsecured 540,000 What amount of cash will be available for unsecured creditors?
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