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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. The assets are shown
A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data. The assets are shown at net realizable values.
Assets pledged with fully secured creditors$240,000Fully secured liabilities 170,000Assets pledged with partially secured creditors 400,000Partially secured liabilities 530,000Assets not pledged 320,000Unsecured liabilities with priority 174,000Accounts payable (unsecured) 410,000
The company owes $23,000 on an account payable to an unsecured creditor (without priority). How much money can this creditor expect to collect?
The company owes $140,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $100,000. How much money can the bank expect to collect?
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