How much money can the given creditor expect to collect

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Reference no: EM131983371

Problem

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	202,000
Fully secured liabilities	151,000
Assets pledged with partially secured creditors	381,000
Partially secured liabilities	492,000
Assets not pledged	301,000
Unsecured liabilities with priority	176,300
Accounts payable (unsecured)	391,000

a. This company owes $4,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?

b. This company owes $102,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $81,000. How much money can this bank expect to collect?

Reference no: EM131983371

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