Reference no: EM132950194

When Aliyah Corporation filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position:

Current Assets (net realizable value, $50,000) - $80,000

Land and Building (fair value, $240,000) - 200,000

Goodwill (fair value, 0) - 40,000

Total Assets - $320,000

Accounts Payable - $160,000

Mortgage Payable (secured by land & building) - 200,000

Ordinary share - 100,000

Accumulated profits - (140,000)

Total Liabilities and Equity - $320.000

Problem 1: What percentage of their claims are the unsecured creditors likely to get?

Option 1: 100%

Option 2: 50.00%

Option 3: 56.25%

Option 4: 43.75%