1-3

Chapter 4 - Corporate Liquiaut MULTIPLE CHOICE PROBLEMS PAYLESS CORPORATION filed a petition of bankruptcy on April 2019. On July 15,2019 the trustee provided the following information about the corporation's Book Value Est. financial affairs. Realizable Value 200,000 200,000 ASSETS 1,000,000 Cash 750,000 Accounts Receivable, Net 1,500,000 750,000 Inventories 2,500,000 2,800,000 Plant Assets- Net 4, 500, 000 LIABILITIES 500,000 Liability for Priority Claims 1,500,000 Accounts Payable 1,000,000 Notes Payable, secured by accounts Receivable Mortgage Payable, secured by all plant 2,200,000 S assets 1. Determine the amount expected to be available for unsecured claims. a. P 1,500,000 c. P 800,000 b. P 900,000 d. P 1,050,000 2. Determine the expected recovery per peso of unsecured claims. a. P0.60 c. P 0.70 b. P 0.5720 d. P 0.6350 3. The amount of recovery to unsecured accounts payable is a. P 855,000 b. P 900,000 c. P 1,290,000 d. P 600,000 trustee has appA trustee has appointed by SEC for SORRY Corporation which is being liquidated. The following transactions occurred after the assets were transferred to the trustee: Sales on account by the trustee were P 150,000; cost of goods sold were P 120,000 consisting of all inventory transferred from SORRY. TRUSTEE SOLD P 24,000 of marketable securities for P 21,000. Receivables collected by the trustee; Old, P 42,000 of the P 76,000 transferred; New; P 94,000. Recorded P 32,000 depreciation on the plant assets of P 192,000 transferred from SORRY.Disbursements by the trustee: Old current payable, P44,000 of the P 96,000 transferred; Trustee's expenses, P8,600. In the statement of realization and liquidation: 4. How much are the total assets to be realized? P 336,000 C. P 436,000 b. P 280,000 d. P 412,000 5. How much is the proceeds from the realization total assets? a. P 265,000 c. P 307,000 b. P 300,000 d. P 286,000 6. How much is the gain or loss from realization? a. P ( 17,200) c. P ( 4,400) b. P ( 22,200) d. P (13,600)