Assume that the reorganized "new capital structure must be 60% debt and 40% common equity, with $4,000,000 of the new debt subordinated to senior debt. After the fair distribution of the new securities under the reorganization O The old Seror Debt of 56.000.000 in the last pre bankruptcy balance sheet will after reorganization, receved (among others new Subordinated Oebit of $4.000.000 OA The old Senior Debt of 56.000.000 in the last pre-bankruptey balance sheet will after reorganiation, received (among others) new Senior Debe of S4.000.000 OC The r Subordinated Debt of 50.000.000 in the last pre tankruptey balance sheet wil, after reorganiation, receive (among others) new Subordinated Debit of $4.000.000 Od The old Subordnated Debt of 59.000,000 in the last pre bankruptey balance sheet will, afer reorganaon, recelve no new Common Stockholders tquity

Assume that the reorganized "new capital structure must be 60% debt and 40% common equity, with $4,000,000 of the new debt subordinated to senior debt. After the fair distribution of the new securities under the reorganization O The old Seror Debt of 56.000.000 in the last pre bankruptcy balance sheet will after reorganization, receved (among others new Subordinated Oebit of $4.000.000 OA The old Senior Debt of 56.000.000 in the last pre-bankruptey balance sheet will after reorganiation, received (among others) new Senior Debe of S4.000.000 OC The r Subordinated Debt of 50.000.000 in the last pre tankruptey balance sheet wil, after reorganiation, receive (among others) new Subordinated Debit of $4.000.000 Od The old Subordnated Debt of 59.000,000 in the last pre bankruptey balance sheet will, afer reorganaon, recelve no new Common Stockholders tquity

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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WANTED Corporation filed bankruptcy on July 1, 2011 and some of the infomation below were taken from its statement of affairs. Estimated Realizable Value P300, 000 Book Value Assets: Assets pledge with fully secured creditors Assets pledge with partially secured creditors P250, 000 180, 000 120, 000 Liabilities: Fully secured creditors Partially secured creditors Unsecured creditors with priority P280, 000 200, 000 100, 000 Unsecured creditors 400, 000 6. Assumed that the assets are converted to cash at the estimated realizable values, what is the total estimated realizable value of the free assets if the partially secured creditors received P176, 000? A. P436, 000 в. Р316, 000 c. P336, 000 D. P416, 000
Alitech Corporation is liquidating under Chapter 7 of the Bankruptcy Act. The accounts of Alitech at the time of filing are summarized as follows: Estimated Realizable Book Value ValueCash $ 10,000 $ 10,000Accounts receivable-net 60,000 50,000Inventory 110,000 65,000Land 20,000 35,000Building 200,000 126,000Goodwill…
Alitech Corporation is liquidating under Chapter 7 of the Bankruptcy Act. The accounts of Alitech at the time of filing are summarized as follows: Estimated Realizable Book Value ValueCash $ 10,000 $ 10,000Accounts receivable-net 60,000 50,000Inventory 110,000 65,000Land 20,000 35,000Building 200,000 126,000Goodwill…
8 ABC Company filed for a voluntary bankruptcy which was granted after having submitted all the required papers and documents. You are provided the following information as of June 30, 2022: Assets Net Book Value Liquidation Value Cash P 4,997 Investments in equity securities 25,000 P40,000 plus uncollected dividends of P5,000 Accounts receivable, net 54,000 P28,000 expected collection Inventory 75,000 P100,000 after further processing of P10,000 Prepaid expense 8,000 P2,000 is refundable Land 140,000 150% of net book value Building, net 200,000 90% of net book value Equipment 80,000 30% of net book value Goodwill 10,000 Liabilities and Equity Carrying Value Other Information Notes payable P120,000 Secured by inventory Trade and other payables 100,000 Loans payable 350,000 Secured by land and…
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