1. D.

 There would be no intercompany accounts from a consolidated point of view because

there is a parent and a subsidiary relationship
2. A.

Unsecured liabilities without priority P 45 000
Stockholders’ equity 36 000
Unsecure liabilities with priority 10 000
Loss on realization of assets ( 45 000)
Total estimated amount available 91 000
Less: Estimated administrative costs 4 500
Unsecured liabilities with priority 10 000 (14 500)
Estimated amount available for unsecured,
non-priority creditors 76,500
(76,500/91,000) 85%
3. B.

Estimated deficiency to unsecured creditors:
Free assets:
Assets pledged to fully secured liabilities
(80 000 – 60 000) P 20 000
Free assets 272 000
Total free assets P 292 000
Less: Unsecured liabilities with priority 40 000
Net free assets P 252 000
Less: Unsecured liabilities without priority:
Partially secured liabilities (80 000 – 50 000) P30 000
Add: Unsecured liabilities without priority 330 000
360 000
Estimated deficiency to unsecured liabilities P180 000
Expected recovery % of Unsecured liabilities
(252 000/360 000) 70% or P.70
4. C.

Total liabilities (refer to Liabilities not liquidated) P 1 700 000
Add: Stockholders’ equity (1 500 – 500 000) 1 000 000
Total LSHE = Total Assets P 2 700 000
Less: Non-cash assets (refer to Assets not liquidated) 1 375 000
Cash balance, ending P 1 325 000
5. D.