a. 234,000b. 230,400c. 384,000d. 276,000 ABC Co. is undergoing liquidation. Information on ABC Co.'s assets and liabilities is shown below:ASSETSBook value Realizable valueAssets pledged to fully secured creditorsAssets pledged to partially secured creditors360,000480,000208,000192,000Free assets600,000576,0001,168,0001,248,000LIABILITIESUnsecured liabilities with priorityFully secured creditorsPartially secured creditorsUnsecured creditors without priority288,000288,000384,000240,000384,000240,000432,000432,0001,344,0001,344,000How much can the partially secured creditors expect to recover from their claims?

At the time of liquidation of company the distribution on net realized value of assets is…

ABC Co. is undergoing liquidation. Information on ABC Co.'s assets and liabilities is shown below ASSETS Book value Realizable value Assets pledged to fully secured creditors Assets pledged to partially secured creditors 360,000 480,000 208,000 192,000 Free assets 600,000 576,000 1,248,000 1,168,000 LIABILITIES Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 288,000 288,000 384,000 240,000 384,000 240,000 432,000 432,000 1,344,000 1,344,000 How much can the partially secured creditors expect to recover from their claims?

ABC Co. is undergoing liquidation. Information on ABC Co.'s assets and liabilities is shown below ASSETS Book value Realizable value Assets pledged to fully secured creditors Assets pledged to partially secured creditors 360,000 480,000 208,000 192,000 Free assets 600,000 576,000 1,248,000 1,168,000 LIABILITIES Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 288,000 288,000 384,000 240,000 384,000 240,000 432,000 432,000 1,344,000 1,344,000 How much can the partially secured creditors expect to recover from their 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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A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values):Assets pledged with fully secured creditors . . . . . . . . . . . . . . . . $220,000Fully secured liabilities .. . . . 160,000Assets pledged with partially secured creditors . . . . . . . . . . . . . . . 390,000Partially secured liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510,000Assets not pledged . . . . . . 310,000Unsecured liabilities with priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,800Accounts payable (unsecured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000a. This company owes $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?b. This company owes $120,000 to a bank on a note payable that is secured by a security interest attached to property with an…
A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values): Assets pledged with fully secured creditors $220,000 Fully secured liabilities 160,000 Assets pledged with partially secured creditors 390,000 Partially secured liabilities 510,000 Assets not pledged 310,000 Unsecured liabilities with priority 182,800 Accounts payable (unsecured) 400,000 This company owes $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect? This company owes $120,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $90,000. How much money can this bank expect to collect?
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A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data. The assets are shown at net realizable values. Assets pledged with fully secured creditors $ 212,000 Fully secured liabilities 156,000 Assets pledged with partially secured creditors 386,000 Partially secured liabilities 502,000 Assets not pledged 306,000 Unsecured liabilities with priority 208,400 Accounts payable (unsecured) 396,000 The company owes $9,000 on an account payable to an unsecured creditor (without priority). How much money can this creditor expect to collect? The company owes $112,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $86,000. How much money can the bank expect to collect? a. Expected amount by creditor b. Expected amount by bank
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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?
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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