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$218,000 Fully secured liabilities159,000 Assets pledged with partially secured creditors389,000 Partially secured liabilities508,000 Assets not pledged309,000 Unsecured liabilities with priority212,600 Accounts payable (unsecured)399,000

1. This company owes $12,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?
2. This company owes $118,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $89,000. How much money can this bank expect to collect?

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$218,000Fully secured liabilities159,000Assets pledged with partially secured creditors389,000Partially secured liabilities508,000Assets not pledged309,000Unsecured liabilities with priority212,600Accounts payable (unsecured)399,000

1. This company owes $12,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?
2. This company owes $118,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $89,000. How much money can this bank expect to collect?

Expected amount by creditor

Expected amount by bank