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
|
202,000
|
|
Fully secured liabilities
|
151,000
|
|
Assets pledged with partially secured creditors
|
381,000
|
|
Partially secured liabilities
|
492,000
|
|
Assets not pledged
|
301,000
|
|
Unsecured liabilities with priority
|
176,300
|
|
Accounts payable (unsecured)
|
391,000
|
a. This company owes $4,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?
b. This company owes $102,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $81,000. How much money can this bank expect to collect?