Magic Mobile Homes is to be liquidated.All creditors,both secured and unsecured,are owed €2 million.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 million.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