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The next three questions are based on the following information: Quitter Co

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The next three questions are based on the following information: Quitter Co. is undergoing liquidation. Relevant information follows:

	Carrying amount	Realizable value
Assets pledged with partially secured creditors	80,000	50,000
Free assets	220,000	160,000

 

	Expected settlement amount	Amount unsecured
Liabilities with priority	16,000	-
Partially secured creditors	75,000	25,000
Unsecured creditors	155,000	155,000

 

12. What is the total amount available for payment of claims of unsecured creditors?

a. 210,000                c. 144,000

b. 160,000                 d.0

13. What is the estimated amount of liquidating dividend per peso claim?

a 1.17                   c. 0.88

b. 1.03                  d. 0.80

14. What is the amount of deficiency to creditors?

a. 36,000

b. 144,000

c. 160,000

d. 180,000

15. The estimated recovery of unsecured creditors without priority is equal

a. to the realizable value of the assets pledged plus the excess amount multiplied by the estimated recovery percentage.

b. to the realizable value of the assets pledged minus the excess amount multiplied by the estimated recovery percentage.

c. to their claims multiplied by the estimated recovery percentage.

d. any of these