Quincy Corp

Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities: The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000. How much should the mortgage holder expect to collect from the liquidation?

A) $474,000
B) $510,000
C) $450,000
D) $480,000
E) $478,000
Land and building sold for $450,000 leaves $60,000 unsecured still owing. 40% x $60,000 = $24,000
Mortgage holder expects $450,000 + $24,000 = $474,000