Fact pattern: one-fourth represents secured and priority daims. 1. The "net free assets" are P75. only one-third (1/3) of their claim. 3. Mr. A has a P36 loan receivable from Green Corp. The loan is secured by an asset with a carrying amount of P40. Mr. A can expect payment of P18 on the loan. 4. Mr. B has a P15 note receivable from Green Corp. The note is secured by an asset with a carrying amount of P20. Mr. B can expect payment of P11 on the note. 5. You are a major shareholder of Green Corp. You own 80 out of the 100 outstanding ordinary shares with P1 par value per share. You can expect to recover nothing on the liquidation of Green Corp.

Fact pattern: one-fourth represents secured and priority daims. 1. The "net free assets" are P75. only one-third (1/3) of their claim. 3. Mr. A has a P36 loan receivable from Green Corp. The loan is secured by an asset with a carrying amount of P40. Mr. A can expect payment of P18 on the loan. 4. Mr. B has a P15 note receivable from Green Corp. The note is secured by an asset with a carrying amount of P20. Mr. B can expect payment of P11 on the note. 5. You are a major shareholder of Green Corp. You own 80 out of the 100 outstanding ordinary shares with P1 par value per share. You can expect to recover nothing on the liquidation of Green Corp.

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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