The Pass-A-Do Corporation advises you that it is facing bankruptcy proceedings. As the company's Certified Public Accountant, you are aware of its condition. The Statement of Financial Position of the Pass-A-Do Corporation at June 30, 2008 is presented below: ASSETS Cash....4 454.*:454:" P 4,000 Accounts Receivable, net........ 140,000 Inventory - Finished Goods.... 20,000 Inventory - Materials.... 80,000 Prepaid Expenses...... 10,000 Marketable Securities.. 40,000 Land...........4: 26,000 Buildings, nel...... 180,000 Machinery, nel... 240,000 Goodwill...... 40,000 Total Assets P 880, LIABILITIES & SHAREHOLDERS' EQUITY Accrued Wages......... P 30,000 Accounts Payable... 160,000 Loans Payable....... 270,000 Mortgage Payable..... 260,000 Ordinary Shares... 200,000 Deficit................" (40,000) Total liabilities & shareholders' equity P 880,000 Supplementary data: a. Cash includes a P1,000 travel advance that has been expended. b. Accounts receivable of P80,000 has been pledged in support of bank loan of P60,000. Credit balances of P10,000 are netted in the accounts receivable total. c. Marketable securities consist of government bonds costing P20,000 and 1,000 shares of Bareto Company Stock. The market value of the bonds is P20,000 and the market value of the stock is P18 per share. The bonds have accrued interest due of P400. The securities are collateral for a P40,000 bank loan. Appraised value of materials is P60,000 and of finished goods is P100,000. For an additional cost of P20,000, the materials would realize P140,000 as finished goods. e. The appraised value of plant assets is: Land, P50,000; Buildings, P220,000; Machinery, P150,000. f. Prepaid insurance will be exhausted during the liquidation period. Accounts payable included P30,000 of withheld payroll taxes and P12,000 owed to creditors who had been reassured by the president that they would be paid. There are unrecorded employer's payroll taxes in the amount of P1,000. Wages payable are not subject to any limitations under bankruptcy laws. Mortgage payable consists of P200,000 on land and buildings and a P60,000 chattel mortgage on machinery. Total unrecorded accrued interest for these mortgages amounted to P4,800. Estimated legal fees and expenses in connection with the liquidation are P20,000. K. Probable liability on judgment in a pending damage suit is P79,650. 1. You have not rendered an invoice for P10,000 for last years' audit and you estimate a P2,000 trustee fee for liquidation work