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 the realizable values):
Assets pledged with fully secured creditors $ 220,000
Fully Secured liabilities 160,000
Assets pledged with partially secured creditors 390,000
Partially secured liabilities 510,000
Assets not pledged 310,000
Unsecured liabilities with priority 182,800
Accounts payable(unsecured) 400,000
a. This company owns $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?
Expected amount by creditor
b. This company owes $120,000 to bank on a note payable that is secured by a serurity interest attached to property with an estimated net realizable value of $ 90,000. How much money can this bank expect to collect?
Expected amount by bank