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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  

 

 

 Required:

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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