1.) C. This is the total assets that are available to creditors without priority and those that are not or partially secured

• Free assets = 160,000
• less: -Liabilities with priority 16,0000
• Total assets available to unsecured creditors= 144,000

2.) D This is the ratio that will be used to multiply to the carrying amount of unsecured creditors and those partially secured for their share in the net free assets.

• Total assets available to unsecured creditors= 144,000
• Divided by total amount of unsecured debt = 180,000 (25,000 from partially secured + 155,000 unsecured)
• = .80

3.) A (Deficiency can be computed by subtracting the total unsecured debt with the net free assets)

• Total assets available to unsecured creditors= 144,000
• Less: total amount of unsecured debt = 180,000 (25,000 from partially secured + 155,000 unsecured)
• 36,000 Deficiency

4.) C (To compute the net recovery of the unsecured creditors, their claims are multiplied by the estimated recovery percentage or the liquidating dividend per peso claim for unsecured debtors.)