Penn Inc.€™s assets have the carrying values and estimated fair values as follows:

Required
a. Prepare a schedule to calculate the net estimated amount available for general unsecured creditors.
b. Compute the percentage dividend to general unsecured creditors.
c. Prepare a schedule showing the amount to be paid each of the creditor groups upon distribution of the $471,000 estimated to berealizable.

Transcribed Image Text:

Carrying Value S 16,000 60,000 90,000 100,000 220,000 250,000 $736,000 Fair Value Cash Accounts Receivable Inventory Land Building (net) Equipment (net) Total 16,000 50,000 65,000 80,000 160,000 100,000 $471,000 Penn's debts follow: Accounts Payable Wages Payable (all have priority) laxes Payable Notes Payable (secured by receivables and inventory) Interest on Notes Payable Bonds Payable (secured by land and building) Interest on Bonds Payable Total S 95,000 9,500 14,000 190,000 5,000 220,000 11,000 $544,500