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Plant and Equipment : $300,000 Accounts Payable: $170,000 Mortgage Payable: $100,000 Stockholder's Equity: $30,000 Total: 300,000 300,000 The plant and equipment has a realizable value
Plant and Equipment : $300,000 Accounts Payable: $170,000 Mortgage Payable: $100,000 Stockholder's Equity: $30,000 Total: 300,000 300,000
The plant and equipment has a realizable value of $180,000, and is pledged as security for the mortgage. The estimated deficiency to unsecured creditors is (explain)
a. $0
b. $ 90,000
c. $170,000
d. $190,000
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