Question
In June 2014, Johnson Inc had three non-cash assets: - Building, Net Book value = $1,000,000, Fair Value = $2,000,000, Amount Owed = $1,500,000 -
In June 2014, Johnson Inc had three non-cash assets:
- Building, Net Book value = $1,000,000, Fair Value = $2,000,000, Amount Owed = $1,500,000
- Land, Net Book Value = $1,300,000, Fair Value = $1,100,000, Amount Owed = $1,400,000 (in the form of a line of credit against the land)
- Equipment, Net Book Value = $2,600,000, Fair Value = $1,600,000, Amount Owed = $2,100,000
They also have unsecured debts of $2,700,000.
If all of the above assets (Land, Building, and Equipment) are properly secured, and they are all sold for their fair market value, how much total Unsecured Debts would exist before we made any distributions?
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