E18-4 Chapter 7 bankruptcy—expected payment of a bond payable Madeline SA had a bond payable partially secured by 50% of plant assets realization. Madeline file a Chapter 7 bankruptcy and a calculation showed that 10% of all unsecured claim can be paid. The expected realization value of the plant assets is $500,000 and the bond payable is reported at $350,000.

REQuIRED: Determine expected payment for the bond payable.

Corporate Liquidations and Reorganizations 621