For this assignment you have to do some research on North Carolina's bankruptcy exemptions and apply them to the scenario below. You'll be given a business' assets (with dollar values) and a grand total. Then, you apply state exemptions (deductions) to reduce the total asset value to arrive at a net figure. That figure represents what asset value the business must use to pay off its debts.

• Here's a link to the bankruptcy exemptions from the NC General Statutes page: Alternatively, you could Google "North Carolina Bankruptcy Exemptions" and find a website that gives you categories of assets that are exempt and dollar values. Don't use federal exemptions.
• Use the attached table to fill in the Amount Exempt and Category of Exemption columns (I did the first one for you so you can see what I mean).
• Assume that Mr. Farquarr is filing for Chapter 7 bankruptcy
• Calculate the net assets available to creditors (total assets minus total exemptions).

Below is a list of assets for Farquarr Mule Skinners, a sole proprietorship of Mr. Gomer Farquarr (45 years old, unmarried, one dependent child).

Description	Mkt. Value	Amt Exempt (if any)	Category of exemption (and reason why it should be exempt)
529 plan held for child	$30,000	$25,000	Funds in a qualified 529 plan to a limit of $25,000 for a child of the debtor. 1C-1601(a)(10)
Cash in savings account	$10,000
Mutual funds in a regular (taxable) brokerage account.	$22,900
Individual Retirement Account balance in an Etrade IRA account	$67,500
Home Furniture (all bought years ago)	$4,000
Mule harnesses, reins, and other equipment	$2,500
Personal residence ($100,000 still owed on mortgage)	$200,000
Barn and outbuilding	$35,700
Pick-up truck (owned outright)	$13,900
80-inch wide-screen TV (bought last week)	$5,000
Total Assets	$391,500
Total Exemptions (add up exempt amounts)
Net amount available to Creditors (Total Assets minus Total Exemptions)

there will most likely be some variation among your responses, as it isn't always immediately clear if something should be exempt.