Anteium Company owes $80,000 on a note payable that is currently due. The note is held by a local bank and is secured by a mortgage lien attached to three acres of land worth $48,000. The land orig¬ inally cost Anteium $31,000 when acquired several years ago. The only other account balances for this company are Investments of $20,000 (but worth $25,000), Accounts Payable of $20,000, Com¬ mon Stock of $40,000, and a deficit of $89,000. Anteium is insolvent and attempting to arrange a reorganization so that the business can continue to operate. The reorganization value of the company is $82,000.

View each of the following as an independent situation: LO4

a. On a statement of financial affairs, how would this note be reported? How would the land be shown?

b. Assume that Anteium develops an acceptable reorganization plan. Sixty percent of the com¬ mon stock is transferred to the bank to settle that particular obligation. A 7 percent, three-year note payable for $5,000 is used to settle the accounts payable. How would Anteium record the reorganization?

c. Assume that Anteium is liquidated. The land and investments are sold for $50,000 and $26,000, respectively. Administrative expenses amount to $ 11,000. How much will the various parties collect?