Magic Mobile Homes is to be liquidated. All creditors, both secured and unsecured, are owed $2.0 million dollars. Administrative costs of liquidation and wages payments are expected to be $500,000. A sale of assets is expected to bring $1.8 million after all costs and taxes. Secured creditors have a mortgage lien for $1,200,000 on the factory which will be liquidated for $900,000 out of the sale proceeds. The corporate tax rate is 34%. How much and what percentage of their claim will the secured creditors receive, in total?

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The Answer of Magic Mobile Homes is to be liquidated. All creditors, both secured and unsecured, are owed $2.0 million dollars. Administrative costs of liquidation and wages payments are expected to be $500,000. A sale of assets is expected to bring $1.8 million after all costs and taxes. Secured creditors have a mortgage lien for $1,200,000 on the factory which will be liquidated for $900,000 out of the sale proceeds. The corporate tax rate is 34%. How much and what percentage of their claim will the secured creditors receive, in total?

Magic Mobile Homes Is to Be Liquidated