1. Using the above data, compute the: Total free assets _________

A. 221780

B. 155820

C. 140820

D. 157980

2. Using the above data , compute the: Net Gain/loss on realization

A. (211690)

B. 211690

C. (157980)

D. 157980

3. Using the above data, compute the: Estimated Recovery Percentage _______

A. 59.96

B. 33.96

C. 65.96

D. 66.96

4. Using the above data, compute the: Estimated Deficiency ______

A. 140820

B. 0

C. 72680

D. 213500

Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay its debts. The statement of nancial position on that date shows: ASSETS LIABILITIES 8 EQUITY Cash P5,400 Accounts Payable P105,000 Accounts Receivable 78,700 Notes Payable PNB 30,000 Note Receivable 37,000 Notes Payable suppliers 102,500 Inventory 175,700 Accrued wages 3,700 Prepaid Expenses 1,900 Accrued taxes 9,300 Land and Building 122,500 Mortgage Bonds Payable 180,000 Equipment, net 97,600 Common stock P100 par 150,000 Retained Earnings (61,700) Total Assets P518800 Total Liabilities 8 Equity 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 Philippine National Bank. b. Inventories are expected to bring in P90,200 when sold under bankruptcy conditions. c. Land and buildings have an appraised value of P190,000. They serve as security on the bonds. d. The current value of the equipment, net of disposal cost is P18,000. e. Estimated legal and accounting fees for the liquidation are P2,000. f. Unrecorded interest on notes payable to supplier amounts to P1 ,000