Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 29

Chesterfield Company has cash of $60,000, inventory worth $110,000, and a building worth $140,000. Unfortunately, the company also has accounts payable of $190,000, a note payable of $90,000 (secured by the inventory), liabilities with priority of $22,800, and a bond payable of $170,000 (secured by the building). In a Chapter 7 bankruptcy, how much money will the holder of the bond expect to receive