Question
Use the following information to answer Questions 34 and 35 below. A statement of affairs shows $30,000 of assets pledged to partially secured creditors, liabilities
Use the following information to answer Questions 34 and 35 below.
A statement of affairs shows $30,000 of assets pledged to partially secured creditors, liabilities of $65,000 to partially secured creditors, liabilities of $25,000 to unsecured creditors with priority, and liabilities of $90,000 to other unsecured creditors.
34. What are total unsecured liabilities, as reported on the statement of affairs?
a. $ 90,000
b. $100,000
c. $125,000
d. $155,000
35. If the estimated deficiency to unsecured creditors is $40,000, what is the amount of total free assets, as reported on the statement of affairs?
a. $ 50,000
b. $ 75,000
c. $ 85,000
d. $110,000
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