Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 9

Chesterfield Company has cash of $50,000, inventory worth $90,000, and a building worth $130,000.Unfortunately, the company also has accounts payable of $180,000, a note payable of $80,000 (secured by the inventory), liabilities with priority of $20,000, and a bond payable of $150,000 (secured by the building).In a Chapter 7 bankruptcy, how much money will the holder of the bond expect to receive