Reference no: EM132769330

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 $ 214,000
Fully secured liabilities 157,000
Assets pledged with partially secured creditors 387,000
Partially secured liabilities 504,000
Assets not pledged 307,000
Unsecured liabilities with priority 184,100
Accounts payable (unsecured) 397,000

Problem 1: This company owes $10,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?

Problem 2: This company owes $114,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $87,000. How much money can this bank expect to collect?