ENRON Company filed a voluntary bankruptcy petition on July 1, 2011 and the statement of affairs reflects thefollowing amounts:BOOKESTIMATEDCARRYINGCURRENTVALUEP185, 00060, 000160. 000P 405. 000VALUEAssets pledge with fully secure creditorsAssets pledge with partially secured creditorsFree AssetsP150, 00090, 000Liability with priorityFully secured creditorsPartially secured creditorsUnsecured creditors210, 000P 450. 000LiabilitiesP35, 000130, 00090, 000270, 000P 525, 0003. Determine the amount to be received by partially secured creditors.В. Р78, 000A.P90, 000C. P60, 000D. P72, 000

Liquidation is a state which happens within entity due to continuous losses of the entity, entity’s…

ENRON Company filed a voluntary bankruptcy petition on July 1, 2011 and the statement of affairs reflects the following amounts: BOOK CARRYING VALUE P150, 000 90, 000 210, 000 P 450. 000 Liabilities P35, 000 130, 000 90, 000 270, 000 P 525. 000 ESTIMATED CURRENT VALUE P185, 000 60, 000 160. 000 P 405. 000 Assets pledge with fully secure creditors Assets pledge with partially secured creditors Free Assets Liability with priority Fully secured creditors Partially secured creditors Unsecured creditors 3. Determine the amount to be received by partially secured creditors. B. P76, 000 с. РО, 000 A. P90, 000 D. P72, 000

ENRON Company filed a voluntary bankruptcy petition on July 1, 2011 and the statement of affairs reflects the following amounts: BOOK CARRYING VALUE P150, 000 90, 000 210, 000 P 450. 000 Liabilities P35, 000 130, 000 90, 000 270, 000 P 525. 000 ESTIMATED CURRENT VALUE P185, 000 60, 000 160. 000 P 405. 000 Assets pledge with fully secure creditors Assets pledge with partially secured creditors Free Assets Liability with priority Fully secured creditors Partially secured creditors Unsecured creditors 3. Determine the amount to be received by partially secured creditors. B. P76, 000 с. РО, 000 A. P90, 000 D. P72, 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company preparing for a Chapter 7 liquidation has listed the following liabilities: Note payable A of $124,000 secured by land having a book value of $67,000 and a fair value of $87,000. Note payable B of $154,000 secured by a building having a $77,000 book value and a $57,000 fair value. Note payable C of $77,000, unsecured. Administrative expenses payable of $37,000. Accounts payable of $137,000. Income taxes payable of $47,000. The company also has these other assets: Cash of $27,000. Inventory of $134,000 but with a net realizable value of $77,000. Equipment of $124,000 but with a net realizable value of $67,000. Based on this information, how much will each of the company’s liabilities be paid at liquidation? Please don't provide answer in image format thank you
47 ABC Corporation has become insolvent and a statement of affairs is being prepared. The following data are given. Market value of assets pledged with fully secured creditors 150,000 Fully secured creditors 50,000 Market value of assets pledged with partly secured creditors 90,000 Partly secured creditors 150,000 Creditors with priority 46,000 Unsecured creditors 80,000 Free assets 76,000 How much is the estimated amount available?
PROBLEM: The creditors of the RR Corp. 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 asset for P1,480,000 and creditor claims as follows: Fully secured P670,000 Partially secured P400,000 Unsecured with priority P200,000 Unsecured without priority P320,000 Assets with 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…
How much is the estimated recovery percentage?
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What are possible reasons for a company with $20 million worth of assets that files for chapter 7 bankruptcy and a secured creditor with claims of over $100 million and the building as a secuirty end up with nothing?
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