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$10,000Mutual funds in a regular (taxable) brokerage account $22,900Individual Retirement Account balance in an Etrade IRA account$67,500Home Furniture (all bought years ago)$4,000Mule harnesses, reins, and other equipment$2,500Personal residence ($100,000 still owed on mortgage)$200,000Barn and outbuilding$35,700Pick up truck (owned outright)$13,90080 inch wide screen TV (bought last week)$5,000Total Assets$391,500Total Exemptions (add up exempt amounts)Net amount available to Creditors (Total Assets minus Total Exemptions)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 13, 2024

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

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).

DescriptionMkt. ValueAmt Exempt (if any)Category of exemption (and reason why it should be exempt)529 plan held for child$30,000$25,000Funds 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$10,000Mutual funds in a regular (taxable) brokerage account.$22,900Individual Retirement Account balance in an Etrade IRA account$67,500Home Furniture (all bought years ago)$4,000Mule harnesses, reins, and other equipment$2,500Personal residence ($100,000 still owed on mortgage)$200,000Barn and outbuilding$35,700Pick-up truck (owned outright)$13,90080-inch wide-screen TV (bought last week)$5,000Total Assets$391,500Total Exemptions (add up exempt amounts)Net amount available to Creditors (Total Assets minus Total Exemptions)