estimated recovery percentage or dividend to unsecured creditors is calculated by which of the following formulas? -Estimated amount available for unsecured creditors with/without priority divided by total claims of all unsecured creditors with/without priority -Net free assets divided by the total claims of unsecured creditors with/without priority -Estimated gain/loss on liquidation divided try total estimated net realizable value of debtor assetsa -Net estimated proceeds available to general unsecured creditors divided by total claims of general unsecured creditors

estimated recovery percentage or dividend to unsecured creditors is calculated by which of the following formulas? -Estimated amount available for unsecured creditors with/without priority divided by total claims of all unsecured creditors with/without priority -Net free assets divided by the total claims of unsecured creditors with/without priority -Estimated gain/loss on liquidation divided try total estimated net realizable value of debtor assetsa -Net estimated proceeds available to general unsecured creditors divided by total claims of general unsecured creditors

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 17GI: When do companies recognize gains and losses from the extinguishment of debt? Where are the gains...

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Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay its debts. The statement of financial position on that date shows: ASSETS LIABILITIES & EQUITY Cash Accounts Receivable Note Receivable Inventory Prepaid Expenses Land and Building Equipment, net P5,400 78,700 37,000 175,700 1,900 122,500 97,600 Accounts Payable Notes Payable – PNB Notes Payable - suppliers Accruedwages Accruedtaxes P105,000 30,000 102,500 3,700 9,300 180,000 150,000 (61,700) P518,800 Mortgage Bonds Payable Common stock-P100 par Retained Earnings Total Liabilities & Equity Total Assets P518,800 Additional information: a. Accounts receivable of P32,220 and notes receivable of P25,000 are expected to be collectible. The good notes are pledged to PhilippineNational Bank. b. Inventories are expectedto bring in P90,200when soldunder bankruptcyconditions. Landand buildingshave an appraised value of P190,000. They serveas security on the bonds. d. The currentvalue of the…
compute the estimated deficiency compute the expected recovery percentage of unsecured creditors compute the amount of estimated loss on assets realization
1. What is the amount of net free assets? 2. What is the estimated loss n asset realization? 3. What is the estimated recovery for the partially secured creditors? 4. What is the estimated recovery percentage for the notes payable?
Requirements: A. Determine the total payment to unsecured creditors. B. Determine the total net free assets. Present the solutions.
The net free assets in the statement of affairs represent an amount that is expected to be available to: a. Total Unsecured liabilities b. Unsecured creditors without priority only c. Unsecured creditors with priority only d. The secured portion of partially secured liabilities
Which of the following items is not being considered in the computation of recovery percentage of unsecured creditors without priority? a. Assets reserved for fully secured credits b. Assets reserved for partially secured credits c. Unsecured portion of partially secured liabilities d. Assets not used as collateral for any liability
Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below: ASSETS Carrying Net Realizable Cash Accounts Receivable Equipment-net Land Amount P250,000 150,000 600,000 1,700,000 P2,700,000 Value P300,000 355,649 200,000 1,500,000 P2,355,649 TOTAL ASSETS LIABILITIES Carrying Amount P1,000,000 500,000 800,000 800,000 P3,100,000 Settlement Amount P1,000,000 Accounts Payable Salaries Payable Notes Payable Loan Payable TOTAL LIABILITIES 500,000 805,234 800,000 P3,105,234 EQUITY Share Capital Retained Earnings Capital Deficiency P1,600,000 (2,000,000) (400,000) TOTAL LIABILITIES & EQUITY P2,700,000 Additional Information: Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process. The equipment is pledged to the loan payable. The land is pledged to the notes payable.
Compute the estimated amount to be paid to partially secured creditors:
The total free assets in the statement of affairs will available to the following, except:a.Fully secured creditorsb.Partially secured creditorsc.Unsecured creditors with priorityd.Unsecured creditors without priority The net free assets in the statement of affairs represent an amount that is expected to be available to:a.Total Unsecured liabilitiesb.Unsecured creditors without priority onlyc.Unsecured creditors with priority onlyd.The secured portion of partially secured liabilities Which of the following items is not being considered in the computation of the recovery percentage of unsecured creditors without priority?a.Assets reserved for fully secured creditsb.Assets reserved for partially secured creditsc.Unsecured portion of partially secured liabilitiesd.Assets not used as collateral for any liability
Classifying Financial Statement Amounts For the following six items, indicate which financial statement category would be affected: (1) net income or (2) other comprehensive income. a. Realized gain on sale of AFS debt investment. b. Realized loss on sale of HTM debt investment. c. Unrealized gain on an AFS debt investment. d. Unrealized loss on a TS debt investment. e. Unrealized gain on an AFS debt investment accounted for using the fair value option. f. Unrealized loss on an equity investment measured at FV-NI.
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What is the recovery percentage of unsecured creditors with priority?