Vandehal Company's total liabilities are $520,000 and its total assets are $460,000, and the company is unable to pay debts as they become due. Vandehal's situation falls within the bankruptcy meaning, but not the Code's definition, of insolvency.

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Quizplus · Accepted Answer

Vandehal's situation does fall within both the general meaning and the Code's definition of insolvency since its total liabilities exceed its total assets, and it is unable to pay its debts as they become due.

Vandehal Company's Total Liabilities Are $520,000 and Its Total Assets