Dividend to Class 7:

$410,000 ÷ $640,000 = 64.1%

c. Unsecured portion of notes payable and

interest $380,000
Dividend on unsecured amount  64.1%
Amount received on unsecured portion $243,580
Proceeds from receivables and inventory 150,000
Total Received $393,580

Dividend to note holders: $393,580 ÷ $530,000 = 74.3%

DIF: D OBJ: 21-3

Dremer Corporation: On June 1, 20X5, the books of Dremer Corporation show assets with book
values and realizable values as follows:

Assets
Realizable
Book Value Value
Cash $ 1,850 $ 1,850
Accounts Receivable (net) 21,200 17,000
Note Receivable 15,000 15,000
Inventory 41,000 20,000
Investment in Calandir Stock 5,800 15,000
Land and Building (net) 98,500 92,800
Equipment (net) 43,000 8,000
Totals $226,350 $169,650

Dremer's books show the following liabilities:

Liabilities
Book Value
Accounts payable (50,000 secured by inventory
and equipment) $ 90,625
Wages payable (eligible for priority) 3,775
Other Accrued Liabilities 10,000
Accrued interest on notes payable 375
Accrued interest on mortgage payable 600
Notes payable (secured by Investment in Calandir Stock) 10,000
Mortgage payable (secured by land and building) 70,000
Total $185,375

21-1