ACCP 472 Test Bank Chapter 18 15) Aqua Corporation filed a petition under Chapte

Question

ACCP 472 Test Bank Chapter 18 15) Aqua Corporation filed a petition under Chapter 7 of the bankruptcy act in January,2014.On February 28, the following information was presented regarding Aqua's financial status. Cash A/R net Inventories Fixed Assets- net Book Values Fair Values $ 50,000 90,000 60,000 230,000 $50,000 100,000 80,000 200,000 Priority Claims A/P N/P Mortgage Payable 80,000 100,000 110,000 200,000 The Note Payable is secured by Accounts Receivable, and the Mortgage Payable is secured by the Fixed Assets. Required Calculate the amount expected to be available for unsecured claims and the percentage recovery that the unsecured class should expect to receive.

Explanation / Answer

Total realisation 430000

Ralisstion after priority claims, N/P and mortgaged payable 60000

So amount available for unsecured claim is 60000

Total unsecured claim is 120000

That is after payment of priority claim N/P and mortgaged claim.

Percentage is 60000/120000= .5

So 50 percent

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