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REVIEW QUESTIONS:
C Co. filed a voluntary bankruptcy petition during the year. Relevant information follows:
Carrying Realizable
ASSETS amount value
Assets pledged with fully secured creditors 300,000 370,000
Assets pledged with partially secured
creditors 180,000 120,000
Free assets 420,000 320,000
900,000 810,000
LIABILITIES
Liabilities with priority 70,000
Fully secured creditors 260,000
Partially secured creditors 200,000
Unsecured creditors 540,000
1,070,000
The assets are converted to cash at the estimated realizable values and the business is liquidated.
3. How much is the total amount paid to the partially secured creditors?
5. The following information was taken from the statement of realization and liquidation of Jury
and J Co. which is undergoing liquidation:
ASSETS:
Assets to be realized 8,000,000
Assets acquired 60,000
Assets realized 4,720,000
Assets not realized 880,000
LIABILITIES:
Liabilities liquidated 8,520,000
Liabilities not liquidated 4,760,000
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SUPPLEMENTARY ITEMS:
Supplementary expenses 100,000
Supplementary income 72,000