This is the December 31, 2014 balance sheet for FD Co. Note that FD Co is headquartered in Toronto and all its operations are within Canada. Cash Accounts Rec Inventory Prepaid Exp Current Assets Deferred taxes Prop, Plant & Equipment Total assets $13,000 $80,000 $150,000 $10,000 $253,000 $20,000 $225,000 $498,000 Accts. Payable Salaries Payable UIC, CPP &HST Pay. Dividends Payable Current Liabilities Bonds Payable Mortgage Payable Total liabilities $140,000 $150,000 $40,000 $28,000 $358,000 $50,000 $30,000 $438,000 Equity Retained earnings Share capital Total Equity Total Liabilities and Equity $2,000 $58,000 $60,000 $498,000 Here are some notes regarding balance sheet items: 1. Accounts receivable are likely to be 25% collectible while inventory has a realizable value of about 50%. The five bond holders have a floating security covering both. One of the bondholders is a hedge fund. Greedy Vulture Inc., which had acquired 20% worth of the total face value of the bonds outstanding at a deep discount of 95% (i.e., at 5% of par)! 2. The company owns property and a plant worth about $75,000 secured by a mortgage held by BMO and equipment with a realizable value of about $50,000. 3. There are two large accounts payable owed to Enbridge ($25,000) and Bell Canada ($10,000) which both have contracts with FD Co. to supply services and the balance of accounts payable is owed to 20 miscellaneous small suppliers. Enbridge. Bell Canada, and all other suppliers are ordinary unsecured creditors. 4. The salaries are payable to employees for wages with no more than $2,000 per employee outstanding. Required: Please answer ( using calculations where appropriate): a) Is FD Co. insolvent? b) Assuming that FD is insolvent, i. What insolvency legislation would they use for protection from their creditors? ii. What are the categories of creditors represented and what would each receive in the case of an immediate liquidation of FD Co.? Assume the priority BIA priority sequence discussed in class. 111. What support would be needed for a reorganization plan to be approved for FD Co