A company has the following balance sheet:
$$\begin{array} { | l | r | l | r | }
\hline \text { Plant and equipment } & \$ 500,000 & \text { Loans payable } & \$ 150,000 \
\hline & & \text { Mortgage payable } & 300,000 \
\hline & & \text { Shareholders' equity } & \underline { 50,000 } \
\hline \text { Total } & \underline { \$ 500,000 } & \text { Total } & \underline { \$ 500,000 } \
\hline
\end{array}$$ The plant and equipment has a realizable value of $350,000, and is pledged as security for the mortgage. The estimated deficiency to unsecured creditors is:

Question

A company has the following balance sheet:
$$\begin{array} { | l | r | l | r | } 
\hline \text { Plant and equipment } & \$ 500,000 & \text { Loans payable } & \$ 150,000 \
\hline & & \text { Mortgage payable } & 300,000 \
\hline & & \text { Shareholders' equity } & \underline { 50,000 } \
\hline \text { Total } & \underline { \$ 500,000 } & \text { Total } & \underline { \$ 500,000 } \
\hline
\end{array}$$ The plant and equipment has a realizable value of $350,000, and is pledged as security for the mortgage. The estimated deficiency to unsecured creditors is:

Quizplus · Accepted Answer

The Answer of A company has the following balance sheet:
$$\begin{array} { | l | r | l | r | } 
\hline \text { Plant and equipment } & \$ 500,000 & \text { Loans payable } & \$ 150,000 \
\hline & & \text { Mortgage payable } & 300,000 \
\hline & & \text { Shareholders' equity } & \underline { 50,000 } \
\hline \text { Total } & \underline { \$ 500,000 } & \text { Total } & \underline { \$ 500,000 } \
\hline
\end{array}$$ The plant and equipment has a realizable value of $350,000, and is pledged as security for the mortgage. The estimated deficiency to unsecured creditors is:

A Company Has the Following Balance Sheet The Plant and Equipment Has a Realizable Value of $350,000