3. Via Corp is to be liquidated. All creditors, both secured and unsecured, are owed P1,500,000. Administrativecosts of liquidation and wages payments are expected to be P500,000. A sale of assets is expected to bringP5,000,000 subsequent to payment of all costs and taxes. What is the liquidation value of Via Corp?a.) P500,000b.) P1,500,000c.) P2,500,000d.) P3,000,000e.) P5,000,0004. PCC Inc has a debt-to-equity ratio or 3:1. After tax cost of debt is 5% while cost of equity is 10%. The board ofdirectors of the company deccided to sell 100% of the company for P1,000,000,000. Compute the projectedmonthly average earnings assuming an EVA of P57,500,000.a) P37,500,000b) P10,000,000c) P100,000,000d) P120,000,000e) P130,000,000QC Corp. declared its dividend consistent with its dividend yield of 0.10. This year, QC Corp's stockholderreceived P0.75 for every share they have in the company. The company's market value per share when thedividend was declared should be?5.a.) P7.50b.) P5.70с.) РО.13d.) PO.75e.) P7.60

3. Via Corp is to be liquidated. All creditors, both secured and unsecured, are owed P1,500,000. Administrative costs of liquidation and wages payments are expected to be P500,000. A sale of assets is expected to bring P5,000,000 subsequent to payment of all costs and taxes. What is the liquidation value of Via Corp? a.) P500,000 b.) P1,500,000 c.) P2,500,000 d.) P3,000,000 c.) P5,000,000

3. Via Corp is to be liquidated. All creditors, both secured and unsecured, are owed P1,500,000. Administrative costs of liquidation and wages payments are expected to be P500,000. A sale of assets is expected to bring P5,000,000 subsequent to payment of all costs and taxes. What is the liquidation value of Via Corp? a.) P500,000 b.) P1,500,000 c.) P2,500,000 d.) P3,000,000 c.) P5,000,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 31P

See similar textbooks

Similar questions

ABC Company has outstanding P 20,500,000 (20,000,000 face value and 500,000 interest payable) note payable to DEF Company on December 31,2020 which is also the due date of this liability.Because of financial difficulties, ABC Company negotiates with DEF to exchange a building with a book value of P 18,000,000. The fair value of this asset base on the market is P 19,750,000.How much is the gain on debt restructuring?
APA Company Owes the ABC Corporation P60,000 on account, which is secured by accounts receivable with a book value of P50,000. The unsecured portion is considered a claim under the bankruptcy law, the company has filed for bankruptcy. Its statement of affairs lists the accounts receivable securing the ABC account with an estimated realizable value of P45,000. If the dividend to general unsecured creditors is 80%, how much can ABC expect to receive?
SG Company is bankrupt and has undergone corporate liquidation. Presented below is its statement of financial position before the start of liquidation (see attached photo):· Liquidation expenses amounting to P600,000 were paid.· The loan payable is secured by the Machinery with fair value of P300,000.· The mortgage payable is secured by the building.· At the end of liquidation, the holder of loan payable received P340,000.Using the information of SG Company, what is the fair value of the building?
(Based on Appendix 14B) Pratt Industries owes First National Bank $5 million but, due to financial difficulties,is unable to comply with the original terms of the loan. The bank agrees to settle the debt in exchange for landhaving a fair value of $3 million. The book value of the property on Pratt’s books is $2 million. For the reportingperiod in which the debt is settled, what amount(s) will Pratt report on its income statement in connection withthe troubled debt restructuring?
APA Corp. was forced into bankruptcy and is in the process of liquidating assets and paying claims. Unsecured claims will be paid at the rate of forty cents on the peso. ABC holds a P30,000 noninterest-bearing note receivable from APA collateralized by an asset with a book value of P35,000 and a liquidation value of P5,000. The amount to be realized by ABC on this note is
1. JBC Company, a car rental company, acquires vehicles with the intention of holding them as rental cars forlimited period and then selling them. As of December 31, 2020, Car 1 was sold for P500,000 and Car 2 was also sold forP435,000. The carrying values of Car 1 and 2 were P150,000 and P130,000, respectively. What amount of gains or losses JBC Company should disclose in the Statement of Comprehensive Income inrelation to the sale of cars above?
Lucio Incorporated is undergoing liquidation. The statement of affairs shows unsecured claims without priority of 5,900,000; partially secured liabilities of 3,900,000; unsecured claims with priority of 365,000, and net free assets of 3,719,000. If unsecured claims wiyhout priority received 55% of their claims, how much will the partially secured liabilities receive?
On 1 November 2020, Bermuda Ltd acquired all the assets and liabilities (other than cash) of Triangle Ltd. The details on the assets and liabilities of Triangle Ltd were as follows: Carrying Amount Fair Value Cash 30,000 30,000 Equipment 120,000 140,000 Accounts Receivable 25,000 25,000 Furniture 35,000 25,000 Accounts Payable 10,000 10,000 Income tax Payable 19,000 19,000 Annual Leave Payable 14,000 14,000 In addition to the above items, Triangle Ltd had an internally generated brand name with a fair value of $75,000 that was not recognized in its accounts. The consideration Bermuda Ltd paid to Triangle Ltd was $80,000 cash and 20,000 shares. The fair value of each Bermuda Ltd share is $10. Bermuda Ltd paid $20,000 in acquisition-related costs. The tax rate is 30%. Required: Conduct an acquisition analysis for Bermuda
On 1 November 2020, Bermuda Ltd acquired all the assets and liabilities (other than cash) of Triangle Ltd. The details on the assets and liabilities of Triangle Ltd were as follows: Carrying Amount Fair Value Cash 30,000 30,000 Equipment 120,000 140,000 Accounts Receivable 25,000 25,000 Furniture 35,000 25,000 Accounts Payable 10,000 10,000 Income tax Payable 19,000 19,000 Annual Leave Payable 14,000 14,000 In addition to the above items Triangle Ltd had an internally generated brand name with a fair value of $75,000 that was not recognised in its accounts. The consideration Bermuda Ltd paid to Triangle Ltd was $80,000 cash and 20,000 shares. The fair value of each Bermuda Ltd share is $10. Bermuda Ltd paid $20,000 in acquisition related costs. Tax rate is 30%.
Lugi Company was forced into bankruptcy and is in the process of liquidating assets and paying claims. Unsecured claims will be paid at the rate of forty cents on the peso. ABC holds a P30,000 non-interest bearing note receivable from Lugi collateralized by an asset with a book value of P35,000 and a liquidation value of P5,000. What amount will be realizable by ABC on this note?
The unsecured creditors of Club Filipino Corporation filed a petition on July 1, 2021 to force the said corporation into bankruptcy. On December 31, 2021, Club Filipino is now in the process of preparing statement of affairs as mandated by the law. The carrying value and estimated fair values of the assets are as follows: Carrying Value Fair Value Cash P20,000 P20,000 Accounts Receivable 45,000 30,000 Inventory 60,000 35,000 Land 80,000 70,000 Building 150,000 100,000 Equipment 120,000 80,000 TOTAL…
The Walston Company is to be liquidated and has the following liabilities: Income taxes . . . . . . . . . . . $ 8,000Notes payable (secured by land) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000 Accounts payable . . . . . . . . 85,000 Salaries payable (evenly divided between two employees) . . . . . . . 6,000Bonds payable . . . . . . . . . . . . 70,000 Administrative expenses for liquidation . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 The company has the following assets: Book Value Fair Value Current Assets $80000 $35000 Land 100000 90000 Buildings and Equipment 100000 110000 How much money will the holders of the notes payable collect following liquidation?