ABC Corporation is undergoing liquidation and has the following statement of financial position as of January 1,
Question:
ABC Corporation is undergoing liquidation and has the following statement of financial position as of January 1, 2020:
The mortgage payable is secured by the building having a realizable value of ₱360,000. Accounts payable amounting to ₱60,000 is secured by the receivables amounting to ₱85,200 which is collectible in the amount of ₱68,160. The balance in the book value of the receivables which has a realizable value of ₱235,000 is used to secure the loan receivable. The inventory has a realizable value of ₱53,000.
In addition to the recorded liabilities are liquidation expenses amounting to ₱9,500 and taxes amounting to ₱4,000.
1. Compute for the following:
a. Estimated deficiency to unsecured creditors
b. Payment to partially secured creditors
c. Payment to unsecured creditors with priority
d. Payment to unsecured creditors w/o priority
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,