The following items were displayed in the statement of affairs for Lubbock Company: Based on the foregoing information, what percentage of their claims should unsecured, nonpriority creditors expect to receive on the liquidation of Lubbock Company under Chapter 7 of the Bankruptcy Code?

Question

The following items were displayed in the statement of affairs for Lubbock Company:  Based on the foregoing information, what percentage of their claims should unsecured, nonpriority creditors expect to receive on the liquidation of Lubbock Company under Chapter 7 of the Bankruptcy Code?

Quizplus · Accepted Answer

Rationale: [$90,000 + $36,000 + $10,000 - $45,000 = $91,000 total estimated amount available; $91,000 - ($4,500 + $10,000) = $76,500 estimated amount available for unsecured, nonpriority creditors; $76,500 ÷ $90,000 = 0.85]

The Following Items Were Displayed in the Statement of Affairs