A Company recently petitioned for bankruptcy and is now in the process ofpreparing a statement of affairs.The carrying values and estimated fair values of the assets of the Company are asfollows:Carrying Value Fair ValueCashP 8,000P 8,000Accounts Receivable 18,00012,000Inventory24,00014,000Land30,00028,000Building (net)72,00040,000Equipment (net)68,00032,000Total220,000134,000 Debts of the Company are as follows:Accounts payableP 24,000Wages Payable (all have priority)4,000Taxes payable4,000Notes payable (secured by receivable and inventory)48,000Interest on Notes Payable2,400Bonds Payable (secured by land and building)60,000Interest on bonds Payable2,800Total145,200What is the estimated amount that will be available for general unsecuredcreditors upon liquidation (net free assets) ?

amount will be available for general unsecured creditors upon liquidation is

A Company recently petitioned for bankruptcy and is now in the process of preparing a statement of affairs. The carrying values and estimated fair values of the assets of the Company are as follows: Carrying Value Fair Value Cash P 8,000 P 8,000 Accounts Receivable 18,000 12,000 Inventory 24,000 14,000 Land 30,000 28,000 Building (net) 72,000 40,000 Equipment (net) 68,000 32,000 Total 220,000 134,000

A Company recently petitioned for bankruptcy and is now in the process of preparing a statement of affairs. The carrying values and estimated fair values of the assets of the Company are as follows: Carrying Value Fair Value Cash P 8,000 P 8,000 Accounts Receivable 18,000 12,000 Inventory 24,000 14,000 Land 30,000 28,000 Building (net) 72,000 40,000 Equipment (net) 68,000 32,000 Total 220,000 134,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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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?
INSOLVENT Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. What is the estimated loss on asset realization? A.59,000 B.38,500 C.41,000 D.56,500
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…
ABC Corp. had the following data ascertained before liquidation: Total book valueof the assets were P250,000. The book value of the inventories, P80,000 had anexcess in the amount of P26,000 over its estimated fair value. The equipment’sestimated fair value had an excess in the amount of P2,500 over its book value ofP120,000. Included in the book value of the assets was prepaid expenses of P18,000which was considered worthless. Other assets not mentioned above have anestimated fair value which was P15,000 less than its book value. Total liabilities wereP200,000. The accounts payable in the amount of P70,000 was secured by theinventories while the notes payable in the amount of P95,000 was secured by theequipment. Other liabilities not mentioned includes salaries and taxes in the amountof P12,500. What is the estimated loss on asset?
ABC Corp. had the following data ascertained before liquidation: Total book valueof the assets were P250,000. The book value of the inventories, P80,000 had anexcess in the amount of P26,000 over its estimated fair value. The equipment’sestimated fair value had an excess in the amount of P2,500 over its book value ofP120,000. Included in the book value of the assets was prepaid expenses of P18,000which was considered worthless. Other assets not mentioned above have anestimated fair value which was P15,000 less than its book value. Total liabilities wereP200,000. The accounts payable in the amount of P70,000 was secured by theinventories while the notes payable in the amount of P95,000 was secured by theequipment. Other liabilities not mentioned includes salaries and taxes in the amountof P12,500.What is the amount of net free assets? a. 32,000 b. 93,000 c. 50,000 d. 44,500
Latex Incorporated is undergoing liquidation. The statement of affairs shows unsecured claims without priority of 3,900,000; partially secured liabilities of 2,800,000; unsecured claims with priority of 264,000 and net free assets of 2,519,000. If unsecured claims without priority received 55% of their claims, how much will the partially secured liabilities receive?
A statement of realization and liquidation has been prepared for the RESTLESS Corporation. The following information is available: Assets to be realized- P60,000 Liabilities assumed- P50,000 Assets acquired- P40,000 Liabilities not liquidated- P40,000 Assets realized- P55,000 Liabilities to be Liquidated- P80,000 Assets not realized- P15,000 Liabilities liquidated- P60,000 Supplementary credits- P110,000 Supplementary Charges- P97,000 How much is the net increase (decrease) in retained earnings?
A statement of realization and liquidation has been prepared for the RESTLESS Corporation. The following information is available:Assets to be realized- P60,000 Liabilities assumed- P50,000Assets acquired- P40,000 Liabilities not liquidated- P40,000Assets realized- P55,000 Liabilities to be Liquidated- P80,000Assets not realized- P15,000 Liabilities liquidated- P60,000Supplementary credits- P110,000 Supplementary Charges- P97,000How much is shareholders’ equity, beg. assuming that the cash balance, ending amounted to P50,000? CHOICES: P92,000 P55,000 P118,000 P12,000
A statement of realization and liquidation has been prepared for the RESTLESS Corporation. The following information is available:Assets to be realized- P60,000 Liabilities assumed- P50,000Assets acquired- P40,000 Liabilities not liquidated- P40,000Assets realized- P55,000 Liabilities to be Liquidated- P80,000Assets not realized- P15,000 Liabilities liquidated- P60,000Supplementary credits- P110,000 Supplementary Charges- P97,000How much is shareholders’ equity, beg. assuming that the cash balance, ending amounted to P50,000? a. P118,000 b. P12,000 c. P92,000 d. P55,000
A statement of realization and liquidation has been prepared for the RESTLESS Corporation. The following information is available:Assets to be realized- P60,000 Liabilities assumed- P50,000Assets acquired- P40,000 Liabilities not liquidated- P40,000Assets realized- P55,000 Liabilities to be Liquidated- P80,000Assets not realized- P15,000 Liabilities liquidated- P60,000Supplementary credits- P110,000 Supplementary Charges- P97,000How much is shareholders’ equity, beg. assuming that the cash balance, ending amounted to P50,000?
A statement of realization and liquidation has been prepared for the RESTLESS Corporation. The following information is available:Assets to be realized- P60,000 Liabilities assumed- P50,000Assets acquired- P40,000 Liabilities not liquidated- P40,000Assets realized- P55,000 Liabilities to be Liquidated- P80,000Assets not realized- P15,000 Liabilities liquidated- P60,000Supplementary credits- P110,000 Supplementary Charges- P97,000How much is the net increase (decrease) in retained earnings?
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