WANTED Corporation filed bankruptcy on July 1, 2011 and some of the infomation below were taken from itsstatement of affairs.EstimatedRealizable ValueP300, 000Book ValueAssets:Assets pledge with fully secured creditorsAssets pledge with partially secured creditorsP250, 000180, 000120, 000Liabilities:Fully secured creditorsPartially secured creditorsUnsecured creditors with priorityP280, 000200, 000100, 000Unsecured creditors400, 0006. Assumed that the assets are converted to cash at the estimated realizable values, what is the totalestimated realizable value of the free assets if the partially secured creditors received P176, 000?A. P436, 000в. Р316, 000c. P336, 000D. P416, 000

The question is multiple choice question. The question is related to bankruptcy of corporation.…

Answered: WANTED Corporation filed bankruptcy on…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

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Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 6P

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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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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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