Tebon Manufacturing is considering seeking relief under Chapter 7 of the Bankruptcy Code. However, the company would prefer to engage in out-of-court activities that would allow for a restructuring of debts in an orderly manner. Before approaching its creditors, the company is attempting to estimate the amount of consideration that would be received by various classes of creditors if the company did liquidate. The company€™s assets and liabilities are as follows:

Of the accounts payable, $130,000 is secured by inventory which has a net realizable value of $150,000. Note A is secured by the balance of the inventory and receivables. Note B is secured by equipment with a net realizable value of $300,000, and the mortgage payable and accrued interest is secured by the land. All of the other liabilities are unsecured, although $10,000 is unsecured with priority over the balance.
Required
Prepare a schedule that sets forth the classes of claims (fully secured, partially secured, unsecured) and the assets that satisfy each class. For each class, compute the dividend and determine the total amount of consideration to be received in satisfaction of Note Payable €”B.

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Realizable Assets Value Value Liabilities Value Receivables . . . . Inventory . . . . Equipment.. . Land 420,000 400,000 380,000 200,000 60,000 600,000 500,000 180,000 12,000 24,000 350,000 Note payable-B . .. 360,000 Mortgage payable.. . Other . .