A company has the following balance sheet: Plant and equipment $500,000 Loans payable Mortgage payable Shareholders' equity Total $500.000 Total $150,000 300,000 50.000 $500,000 The plant and equipment has a realizable value of $350,000, and is pledged as security for the mortgage. The estimated deficiency to unsecured creditors is: Select one: O A. $200,000 B. $100,000 C. $150,000 D. $ 50,000 A bankrupt firm has a loan payable of $400,000, secured by property with a realizable value of $200,000. The expected recovery percentage for the firm's unsecured creditors is 50%. What is the expected recovery percentage on the loan? Select one: O A. 60% B. 50% C. 85% OD. 75% A firm is undergoing reorganization. Reorganization items on the income statement are likely to include all the following except Select one: O A. Gains on settlement of postpetition liabilities. B. Penalties from cancelation of purchase contracts. C. Interest income on investment of excess cash. D. Gains and losses resulting from adjusting existing book values of liabilities to the amounts likely to be allowed. When a firm is in financial difficulty, which of the following occurs outside the judicial system? Select one: O O A. Chapter 11 reorganization B. Chapter 7 liquidation C. Chapter 13 bankruptcy O D. Troubled debt restructuring Which one of the following is an unsecured liability with priority in a Chapter 7 bankruptcy? 0 Select one: O A. Compensation owed to employees for services rendered 7 months ago B. $20,000 of a $100,000 loan secured with property having a fair value of $80,000. O C. Customer deposits for goods or services not delivered. O D. Amounts due to pension plans for services rendered 9 months ago