The trust for Ardolio, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60, 000 may expect to receive approximately P36, 000 if assets are sold for the benefit of creditors. Michael is an employee who is owed P750. Meldcan holds a note for P1, 000 on which interest of P50 is accrued; nothing has been pledged on the note. Compboy holds a note of P6, 000 on which interest of P300 is accrued; securities with a book value of P6,500 and a present market value of P5, 000are pledged on the note. Serpor holds a note for P2,500 on which interest of P150 is accrued property with a book value of P2,000 and a present market value of P3,000 is pledged on the note. The creditors if the Rogerod Corporation agreed to a liquidation based on the statement of affairs suggested that unsecured creditors, without priority would receive approximately P.60 on the peso. The unsecured creditors are interested in determining whether the preliminary estimate still seems appropriate. The trustee was originally assigned noncash assets of P1,480,000 and creditors' claims as follows: fully secured, P670,000; partially secured, P400,000; unsecured with priority, P200,000, and unsecured without priority, P320,000. Assets with a book value of P45,000 and unsecured liabilities (without priority) of P35,000 were subsequently discovered. Assets with a total book value of P740,000 were sold for P715,000 net. Fully secured liabilities of P410,000 and partially secured liabilities of P280,000 were paid. Remaining liquidation expenses were estimated to be P30,000. Assume the remaining noncash assets have an estimated net realizable value as follows: Assets traceable to fully secured creditors Assets traceable to partially secured creditors Remaining assets P 240,000 110,000 382,000
The trust for Ardolio, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60, 000 may expect to receive approximately P36, 000 if assets are sold for the benefit of creditors. Michael is an employee who is owed P750. Meldcan holds a note for P1, 000 on which interest of P50 is accrued; nothing has been pledged on the note. Compboy holds a note of P6, 000 on which interest of P300 is accrued; securities with a book value of P6,500 and a present market value of P5, 000are pledged on the note. Serpor holds a note for P2,500 on which interest of P150 is accrued property with a book value of P2,000 and a present market value of P3,000 is pledged on the note. The creditors if the Rogerod Corporation agreed to a liquidation based on the statement of affairs suggested that unsecured creditors, without priority would receive approximately P.60 on the peso. The unsecured creditors are interested in determining whether the preliminary estimate still seems appropriate. The trustee was originally assigned noncash assets of P1,480,000 and creditors' claims as follows: fully secured, P670,000; partially secured, P400,000; unsecured with priority, P200,000, and unsecured without priority, P320,000. Assets with a book value of P45,000 and unsecured liabilities (without priority) of P35,000 were subsequently discovered. Assets with a total book value of P740,000 were sold for P715,000 net. Fully secured liabilities of P410,000 and partially secured liabilities of P280,000 were paid. Remaining liquidation expenses were estimated to be P30,000. Assume the remaining noncash assets have an estimated net realizable value as follows: Assets traceable to fully secured creditors Assets traceable to partially secured creditors Remaining assets P 240,000 110,000 382,000
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 67P
Related questions
Question
Answer this question please. Thanks
Transcribed Image Text:The trust for Ardolio, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total
P60, 000 may expect to receive approximately P36, 000 if assets are sold for the benefit of creditors.
Michael is an employee who is owed P750.
Meldcan holds a note for P1, 000 on which interest of P50 is accrued; nothing has been pledged on the note.
Compboy holds a note of P6, 000 on which interest of P300 is accrued; securities with a book value of P6,500
and a present market value of P5, 000are pledged on the note.
Serpor holds a note for P2,500 on which interest ofP150 is accrued property with a book value of P2,000 and
a present market value of P3,000 is pledged on the note.
The creditors if the Rogerod Corporation agreed to a liquidation based on the statement of affairs suggested that
unsecured creditors, without priority would receive approximately P.60 on the peso. The unsecured creditors are
interested in determining whether the preliminary estimate still seems appropriate. The trustee was originally
assigned noncash assets of P1,480,000 and creditors' claims as follows: fully secured, P670,000; partially secured,
P400,000; unsecured with priority, P200,000, and unsecured without priority, P320,000. Assets with a book value
of P45,000 and unsecured liabilities (without priority) of P35,000 were subsequently discovered. Assets with a
total book value of P740,000 were sold for P715,000 net. Fully secured liabilities of P410,000 and partially
secured liabilities of P280,000 were paid. Remaining liquidation expenses were estimated to be P30,000.
Assume the remaining noncash assets have an estimated net realizable value as follows:
Assets traceable to fully secured creditors
Assets traceable to partially secured creditors
Remaining assets
P 240,000
110,000
382,000
Transcribed Image Text:23.
Determining the revised estimate Rogerod Corporation of the dividend to be received by unsecured creditors
without priority:
A. 100.00%
В.
66.17%
С.
45.97%
D. Cannot be determined
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT