Use the following information to answer Questions bellow
A company's statement of affairs reports the following:
• Assets pledged to fully secured creditors, $500,000.
• Assets pledged to partially secured creditors, $250,000.
• Fully secured liabilities, $325,000
• Partially secured liabilities, $400,000.
• Free assets, $81,000.
• Unsecured liabilities with priority, $40,000.
• Unsecured liabilities, $210,000.
-How much can unsecured creditors with priority expect to be paid per dollar of debt?

Question

Quizplus · Accepted Answer

Unsecured creditors with priority are paid before general unsecured creditors. The free assets amount to $81,000, which is more than enough to cover the $40,000 of unsecured liabilities with priority. Therefore, these creditors can expect to be paid $1.00 per dollar of debt.

Use the Following Information to Answer Questions Bellow