A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values):
|
Assets pledged with fully secured creditors |
$200,000 |
|
Fully secured liabilities |
150,000 |
|
Assets pledged with partially secured creditors |
380,000 |
|
Partially secured liabilities |
490,000 |
|
Assets not pledged |
300,000 |
|
Unsecured liabilities with priority |
160,000 |
|
Accounts payable (unsecured) |
390,000 |
a. This company owes $3,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?
b. This company owes $100,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $80,000. How much money can this bank expect to collect?