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Land with a Net Realizable Value of $150,000 Is Used

Question 51

Multiple Choice

Land with a net realizable value of $150,000 is used as collateral against an $85,000 notes payable. In which section of a Statement of Financial Affairs would the land appear?


A) Pledged assets with partially secured creditors.
B) Liabilities with priority.
C) Free assets.
D) Unsecured creditors.
E) Pledged assets with fully secured creditors.

Correct Answer:

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