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Question(s) / Instruction(s):

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                       $200,000  

  Fully secured liabilities                                                                150,000  

  Assets pledged with partially secured creditors                               380,000  

  Partially secured liabilities                                                         490,000  

  Assets not pledged                                                                      300,000  

  Unsecured liabilities with priority                                           160,000  

  Accounts payable (unsecured)                                                               390,000  




1)            This company owes $3,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?

2)            This company owes $100,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $80,000. How much money can this bank expect to collect?

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