Lucky Co. had cash of $65,000, inventory worth $117,000, and a building worth $169,000. Unfortunately, the...

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Lucky Co. had cash of $65,000, inventory worth $117,000, and a building worth $169,000. Unfortunately, the company also had accounts payable of $234,000, a note payable of $104,000 (secured by the inventory), liabilities with priority of $26,000, and a bond payable of $195,000 (secured by the building). a) In a Chapter 7 bankruptcy, total assets available to pay liabilities with priority and unsecured creditors are calculated to be what amount? b) Assets available for unsecured creditors after payment of liabilities with priority are calculated to be what amount? c) Total unsecured liabilities are calculated to be what amount? d) Total payment on the bond is calculated to be what amount? Lucky Co. had cash of $65,000, inventory worth $117,000, and a building worth $169,000. Unfortunately, the company also had accounts payable of $234,000, a note payable of $104,000 (secured by the inventory), liabilities with priority of $26,000, and a bond payable of $195,000 (secured by the building). a) In a Chapter 7 bankruptcy, total assets available to pay liabilities with priority and unsecured creditors are calculated to be what amount? b) Assets available for unsecured creditors after payment of liabilities with priority are calculated to be what amount? c) Total unsecured liabilities are calculated to be what amount? d) Total payment on the bond is calculated to be what amount?

Answer rating: 100% (QA)

a Free assets Cash 65000 Excess from assets pledged with secured creditors 117000 104000 13000 Tot... View the full answer