ENABLING ASSESSMENT

1. Moveon Corporation is undergoing liquidation. Relevant information follows:

Carrying Amount Realizable Value

Assets pledged with partially 80,000 50,000

secured creditors

Free assets 220,000 160,000

Expected settlement amount Amount unsecured

Liabilities with priority 16,000 -

Partially secured creditors 75,000 25,000

Unsecured creditors 155,000 155,000

● The estimated amount of liquidating dividend per peso claim is ___.

0.80

● The total amount available for payment of claims of unsecured creditors is ___.
144000

● The amount of deficiency to creditors is ___.

36000

2. A trustee has been appointed by SEC for ELM Inc., which is being liquidated. The following
transactions occurred after the assets were transferred to the trustee:
a. Sales on account by the trustee were P75,000. Cost of goods sold were P60,000, consisting of
all the inventory transferred from ELM.
b. The trustee sold P12,000 worth of marketable securities for P10,500.
c. Receivables collected by the trustee:

Old P21,000 of the P38,000 transferred

New P47,000

d. Recorded P16,000 depreciation on the plant assets of P96,000 transferred from ELM.
e. Disbursements by the trustee:

Old current payable P22,000 of the P48,000 transferred

Trustee’s expenses P4,300

● In the statement of realization and liquidation of ELM Inc., the total assets to be realized is ___.
206000

● The total assets realized is ___.

 153500

● The net gain (loss) is ___.

(6800)