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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
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 Fully secured liabilities Assets pledged with partially secured creditors Partially secured liabilities Assets not pledged Unsecured liabilities with priority Accounts payable (unsecured) $220,000 160,000 390,000 510,000 310,000 182,800 400,000 a. This company owes $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect? Expected amount by creditor b. 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? Expected amount by bank
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