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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) $ 222,000 161,000 391,000 512,000 311,000 189,300 401,000 a. This company owes $14,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect? b. This company owes $122,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $91,000. How much money can this bank expect to collect? $ 0 a. Expected amount by creditor b. Expected amount by bank $ 0
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