1. Acme Co. purchased a new building for $850,000. To do so, it borrowed $450,000 from Shapiro Limited and gave Shapiro a first mortgage on the building. Acme also borrowed $400,000 from Basco Limited and gave Basco a second mortgage. Both mortgages were duly registered. Acme later went into bankruptcy. The trustee in bankruptcy realized the following amounts from the sale of its business assets and the outstanding liabilities at that time of bankruptcy.

2. Respond to these questions for bankruptcy situation #1:
   • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
   • Assume that all secured creditors had taken the necessary steps to protect their security.
   • Identify the amounts available and owed to the different categories of creditors.
   • How many cents on the dollar should the general unsecured creditors receive?
   • Save your responses using this SPREADSHEET document.
3. Read the following bankruptcy situation #2:

   The Not So Fine Manufacturing Co. Ltd. was judged bankrupt on a petition by its creditors, and the trustee in bankruptcy realized the following amounts from the sale of its business assets:

   The liabilities of the business were as follows at the time of the receiving order:

   The expenses of liquidation were $5000. The trustees fee was $3000.

4. Respond to these questions for bankruptcy situation #2:
   • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
   • Assume that all secured creditors had taken the necessary steps to protect their security.
   • Identify the amounts available and owed to the different categories of creditors.
   • How many cents on the dollar should the general unsecured creditors receive?
   • Save your responses using this SPREADSHEET document.

   • Acme Co. purchased a new building for $850,000. To do so, it borrowed $450,000 from Shapiro Limited and gave Shapiro a first mortgage on the building. Acme also borrowed $400,000 from Basco Limited and gave Basco a second mortgage. Both mortgages were duly registered. Acme later went into bankruptcy. The trustee in bankruptcy realized the following amounts from the sale of its business assets and the outstanding liabilities at that time of bankruptcy.

   • Respond to these questions for bankruptcy situation #1:
     • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
     • Assume that all secured creditors had taken the necessary steps to protect their security.
     • Identify the amounts available and owed to the different categories of creditors.
     • How many cents on the dollar should the general unsecured creditors receive?
     • Save your responses using this SPREADSHEET document.
   • Read the following bankruptcy situation #2:

     The Not So Fine Manufacturing Co. Ltd. was judged bankrupt on a petition by its creditors, and the trustee in bankruptcy realized the following amounts from the sale of its business assets:

     The liabilities of the business were as follows at the time of the receiving order:

     The expenses of liquidation were $5000. The trustees fee was $3000.

   • Respond to these questions for bankruptcy situation #2:
     • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
     • Assume that all secured creditors had taken the necessary steps to protect their security.
     • Identify the amounts available and owed to the different categories of creditors.
     • How many cents on the dollar should the general unsecured creditors receive?
     • Save your responses using this SPREADSHEET document.

     • Acme Co. purchased a new building for $850,000. To do so, it borrowed $450,000 from Shapiro Limited and gave Shapiro a first mortgage on the building. Acme also borrowed $400,000 from Basco Limited and gave Basco a second mortgage. Both mortgages were duly registered. Acme later went into bankruptcy. The trustee in bankruptcy realized the following amounts from the sale of its business assets and the outstanding liabilities at that time of bankruptcy.

     • Respond to these questions for bankruptcy situation #1:
       • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
       • Assume that all secured creditors had taken the necessary steps to protect their security.
       • Identify the amounts available and owed to the different categories of creditors.
       • How many cents on the dollar should the general unsecured creditors receive?
       • Save your responses using this SPREADSHEET document.
     • Read the following bankruptcy situation #2:

       The Not So Fine Manufacturing Co. Ltd. was judged bankrupt on a petition by its creditors, and the trustee in bankruptcy realized the following amounts from the sale of its business assets:

       The liabilities of the business were as follows at the time of the receiving order:

       The expenses of liquidation were $5000. The trustees fee was $3000.

     • Respond to these questions for bankruptcy situation #2:
       • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
       • Assume that all secured creditors had taken the necessary steps to protect their security.
       • Identify the amounts available and owed to the different categories of creditors.
       • How many cents on the dollar should the general unsecured creditors receive?
       • Save your responses using this SPREADSHEET document.

       • Acme Co. purchased a new building for $850,000. To do so, it borrowed $450,000 from Shapiro Limited and gave Shapiro a first mortgage on the building. Acme also borrowed $400,000 from Basco Limited and gave Basco a second mortgage. Both mortgages were duly registered. Acme later went into bankruptcy. The trustee in bankruptcy realized the following amounts from the sale of its business assets and the outstanding liabilities at that time of bankruptcy.

       • Respond to these questions for bankruptcy situation #1:
         • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
         • Assume that all secured creditors had taken the necessary steps to protect their security.
         • Identify the amounts available and owed to the different categories of creditors.
         • How many cents on the dollar should the general unsecured creditors receive?
         • Save your responses using this SPREADSHEET document.
       • Read the following bankruptcy situation #2:

         The Not So Fine Manufacturing Co. Ltd. was judged bankrupt on a petition by its creditors, and the trustee in bankruptcy realized the following amounts from the sale of its business assets:

         The liabilities of the business were as follows at the time of the receiving order:

         The expenses of liquidation were $5000. The trustees fee was $3000.

       • Respond to these questions for bankruptcy situation #2:
         • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
         • Assume that all secured creditors had taken the necessary steps to protect their security.
         • Identify the amounts available and owed to the different categories of creditors.
         • How many cents on the dollar should the general unsecured creditors receive?
         • Save your responses using this SPREADSHEET document.

         • Acme Co. purchased a new building for $850,000. To do so, it borrowed $450,000 from Shapiro Limited and gave Shapiro a first mortgage on the building. Acme also borrowed $400,000 from Basco Limited and gave Basco a second mortgage. Both mortgages were duly registered. Acme later went into bankruptcy. The trustee in bankruptcy realized the following amounts from the sale of its business assets and the outstanding liabilities at that time of bankruptcy.

         • Respond to these questions for bankruptcy situation #1:
           • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
           • Assume that all secured creditors had taken the necessary steps to protect their security.
           • Identify the amounts available and owed to the different categories of creditors.
           • How many cents on the dollar should the general unsecured creditors receive?
           • Save your responses using this SPREADSHEET document.
         • Read the following bankruptcy situation #2:

           The Not So Fine Manufacturing Co. Ltd. was judged bankrupt on a petition by its creditors, and the trustee in bankruptcy realized the following amounts from the sale of its business assets:

           The liabilities of the business were as follows at the time of the receiving order:

           The expenses of liquidation were $5000. The trustees fee was $3000.

         • Respond to these questions for bankruptcy situation #2:
           • List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
           • Assume that all secured creditors had taken the necessary steps to protect their security.
           • Identify the amounts available and owed to the different categories of creditors.
           • How many cents on the dollar should the general unsecured creditors receive?