Borden Corporation is undergoing a Chapter 7 liquidation. Currently, it has cash of $130,000, inventory...
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Borden Corporation is undergoing a Chapter 7 liquidation. Currently, it has cash of $130,000, inventory of $650,000, and equipment of $775,000. It owes an unsecured bank loan payable of $500,000 and unsecured accounts payable of $1,600,000. During the current month, the Receiver sells Borden's entire inventory to a liquidator for $290,000. The entire cash balance is then distributed to unsecured creditors. The receiver's payment to the bank is
$500,000.
$420,000.
$100,000.
$290,000.
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