Reference no: EM132811532

Company is under liquidation and a trustee is appointed to liquidate the company. The following data were provided in relation to the liquidation:

Assets at book value P200,000
Assets at net realizable value 150,000
Liabilities at book value: ___
Fully secured 80,000
Unsecured 90,000
Unrecorded liabilities: ___
Accrued interest 620
Administrative expenses 6,580

Problem 1: What is the estimated deficiency?

Problem 2: At the time of corporate liquidation, the preferred stockholders were not able to receive anything. Which corporate creditors were certainly paid in full in the absence of other data?

I. Fully secured creditors
II. Partially secured creditors
III. Unsecured creditors with priority
IV. Unsecured creditors without priority

A. I only
B. I and II only
C. I, II and III only
D. I, II, III and IV