LD Inc. declared bankruptcy through a Chapter 7 filing. Consider the following data in millions of dollars and determine the funds available for secured creditors.
-Proceeds from the liquidation of assets = $395
-First mortgage = $102
-Administration expenses associated with the bankruptcy = $5
-Notes payable to the banks = $205
-Subordinated debentures = $350
-Taxes due to federal, state, and other governmental agencies = $17
-Wages due employees (2,000 employees) = $6
A) $265
B) $367
C) $267
D) $369

Question

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The Answer of LD Inc. declared bankruptcy through a Chapter 7 filing. Consider the following data in millions of dollars and determine the funds available for secured creditors.
-Proceeds from the liquidation of assets = $395
-First mortgage = $102
-Administration expenses associated with the bankruptcy = $5
-Notes payable to the banks = $205
-Subordinated debentures = $350
-Taxes due to federal, state, and other governmental agencies = $17
-Wages due employees (2,000 employees) = $6
A) $265
B) $367
C) $267
D) $369

LD Inc Declared Bankruptcy Through a Chapter 7 Filing