Gonne Corporation is being liquidated under Chapter 7 of the Bankruptcy Act.The trustee has determined that the unsecured claims will receive $.35 on the dollar.Odemay Corporation holds a $100,000 mortgage note receivable from Gonne that is secured by equipment with a $120,000 book value and a $75,000 fair value.
Required:
How much of the mortgage receivable will be recovered by Odemay?

Question

Quizplus · Accepted Answer

The Answer of Gonne Corporation is being liquidated under Chapter 7 of the Bankruptcy Act.The trustee has determined that the unsecured claims will receive $.35 on the dollar.Odemay Corporation holds a $100,000 mortgage note receivable from Gonne that is secured by equipment with a $120,000 book value and a $75,000 fair value.
Required:
How much of the mortgage receivable will be recovered by Odemay?

Gonne Corporation Is Being Liquidated Under Chapter 7 of the Bankruptcy