A statement of financial affairs created for an insolvent corporation that is beginning the process...
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Accounting
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. A. This company owes $13,000 to an unsecured (without priority). How much money can this creditor expect to collect? B. This company owes $120,000 to a bank on a note payable that is secured by security interest attached to property with an estimated net realizable value of $90,000. How much money can this bank expect to collect?
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