Acme Co. purchased a new building for $85,000. To do so, it borrowed $45,000 from Shapiro Limited and gave Shapiro a first mortgage on the building. Acme also borrowed $40,000 from Basco Limited and gave Basco a second mortgage. Both mortgages were duly registered. Acme later goes into bankruptcy. Below is Acme's most recent Balance Sheet.

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The Answer of Acme Co. purchased a new building for $85,000. To do so, it borrowed $45,000 from Shapiro Limited and gave Shapiro a first mortgage on the building. Acme also borrowed $40,000 from Basco Limited and gave Basco a second mortgage. Both mortgages were duly registered. Acme later goes into bankruptcy. Below is Acme's most recent Balance Sheet.

Acme Co Purchased a New Building for $85,000