Which statement regarding the liquidation transactions

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Question 1: Mark & Co. has building and land assets at a carrying value of USD800,000 and USD1,250,000 respectively. These assets are acquired by lease. The balance of the lease has not been paid and the interest is USD1,500,000 and USD51,000 respectively. The market value of buildings and land based on valuation by independent qualified appraisers is USD650,000 and USD1,300,000 respectively. The following statement regarding the above liquidation transactions is EXCEPT

A. A lease liability is a partially secured liability.

B. The asset is a fully secured asset.

C. This lease liability should be given priority settlement before preference shares.

D. The net realizable value of both property assets is USD1,950,000

Reference no: EM132589734

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