If the assets could be sold for $228,000, what is the minimum amount that Laurel's creditors would have received?

Question

Quizplus · Accepted Answer

To find the minimum amount Laurel's creditors would receive, we need to subtract the total debt from the amount the assets were sold for: $228,000 - $189,500 = $38,500. However, the question asks for the minimum amount, which means we need to take into account the fact that the secured creditor (who takes priority over the unsecured creditors) would receive $2500 of this amount. Therefore, the minimum amount Laurel's creditors would receive is $38,500 - $2,500 = $36,000. Choice D is the closest to this amount.

If the Assets Could Be Sold for $228,000, What Is