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Spectrum Corporation is experiencing severe financial difficulties and is considering filing a bankruptcy petition. At this time, it has the following information: * Notes payable

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Spectrum Corporation is experiencing severe financial difficulties and is considering filing a bankruptcy petition. At this time, it has the following information: * Notes payable amounting to P92,000 is secured by Furnitures and Fixtures estimated to be sold at P102,500, which is 2/3 of its recorded amount. * Of the P244,500 loans payable, P68.750 is secured by a machinery with a carrying amount of P96,000 expected to make proceeds equal to 70% of its book value. * Equipment with a carrying amount of P161.250 has an estimated realizable value of P123,750. * Other unrecorded liabilities are accrued interest on notes of P3,875; salaries payable of P21.750; taxes payable of P14.500 and trustee's fees of P10.625. * Cash available prior to liquidation amounts to P14,875. * Total assets of Spectrum Corporation presented in the Statement of Financial Position prior to liquidation amounts to P600,000 including prepaid expenses and goodwill amounting to P9,500 and P27,500, respectively, which have no estimated realizable values. Remaining assets other than those whose estimated realizable values were mentioned above has a realizable values of 60% of the recorded amounts. Total liabilities of Spectrum Corporation presented in the statement of financial position prior to liquidation amounts to P475,000

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