Question
kindly answer with or without solutions Look for the following a. estimated recovery percentage of unsecured creditors without priority? b. total amount paid to the
kindly answer with or without solutions
Look for the following
a. estimated recovery percentage of unsecured creditors without priority?
b. total amount paid to the partially secured creditors?
c. total amount paid to the unsecured creditors?
d. amount of cash will be available to pay unsecured non-priority claims?
A corporation filed a voluntary bankruptcy petition during the year.
Assets
Assets pledged with fully secured creditors (Carrying Amount $300) (Realizable Value $370)
Assets pledged with partially secured creditors (Carrying Amount $180) (Realizable Value $120)
Free Assets (Carrying Amount $420) (Realizable Value $320)
(Total Carrying Amount $900) (Total Realizable Value $810)
Liabilities
Liabilities with priority $70
Fully secured creditors $260
Partially secured creditors $200
Unsecured creditors $540
(Total Liabilities $1070)
The assets are converted to cash at the estimated realizable values and the business is liquidated.
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