The trustee for the DOWNFALL, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60,000 may expect to receive approximately P36,000 if assets are sold for the benefit of creditors.

A is an employee who is owed P1,500.

B holds a note for P2,000 on which interest of P100 is accrued; nothing has been pledged on the note.

C holds a note of P12,000 on which interest of P600 is accrued; securities with a book value of P13,000 and a realizable value of P10,000 are pledged on this note.

D holds a note for P5,000 on which interest of P300 is accrued; property with a book value of P4,000 and a realizable value of P6,000 is pledged on the note.

How much may each of the following creditors hope to receive?

• No answer provided
• a. A - 0.00; B - 0.00; C - 10,000.00; D - 5,300.00
• b. A - 1,500.00; B - 1,260.00; C - 11,560.00; D - 5,300.00
• c. A - 900.00; B - 0.00; C - 11,560.00; D - 6,000.00
• d. A - 900.00; B - 1,260.00; C - 10,000.00; D - 6,000.00