Problem
A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values):
|
Assets pledged with fully secured creditors
|
220,000
|
|
Fully secured liabilities
|
160,000
|
|
Assets pledged with partially secured creditors
|
390,000
|
|
Partially secured liabilities
|
510,000
|
|
Assets not pledged
|
310,000
|
|
Unsecured liabilities with priority
|
182,800
|
|
Accounts payable (unsecured)
|
400,000
|
This company owes $120,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $90,000. How much money can this bank expect to collect?