1.
Philippine National Bank holds a P500, 000 note secured by a building owned by
Luigi software, which has filed for Bankruptcy. If the property has a book value
of P600, 000and a fair market value of P450, 000. What is the best way to
describe the note held by Philippine National Bank? The Bank has
2. X and Y Inc. owes the Xylo Corporation p60, 000 on account, which is secured
by account receivable with the book value of P50, 000. The unsecured portion is
considered a claim under the bankruptcy law, X and Y has filed for bankruptcy.
Statement of affairs lists the accounts receivable securing the Xylo account with
an estimated realizable value of P45, 000. If the dividend to general unsecured
creditors is 80%, how much can Xylo expect to receive?
3. P Corporation is parent, having purchased 60% of S Company’s common stock at
par value for P60, 000. S Company is in financial difficulty. The parent granted
an unsecured loan of P200, 000 to the subsidiary. An accounting statement of
affairs for S shows a dividend of 30%. P Corporation can expect to receive on the
loan of appropriately:
4. P Corporation is a parent, having purchased 60% of S Company’s common stock
at par value for P600, 000. S Company is in financial difficulty. The parent
granted as unsecured loan of P200, 000 to the subsidiary. An accounting
statement of affairs for S Company shows a dividend of 30%. P Corporation can
expect to receive payment for its investment in S Company of approximately:
5. Kent, Inc. has forced into bankruptcy and has begun to liquidate. Unsecured claim
will be paid at the rate of 40 cents on the peso. Apex Co. holds a non-interest
bearing note receivable from Kent in the amount of P100, 000, collateralized by
machinery with a liquidation value of P25, 000. The total amount to be realized
by Apex on this note receivable is:
6. Seco Corp. was forced into bankruptcy and is in the process of liquidation assets
and paying claims. Unsecured claims will be paid at the rate of forty cents on the
peso. Hale holds a P30, 000 non interest bearing note receivable from Seco
collateralized by an asset with a book value of P35, 000 and a liquidation value of
P5, 000. The amount to be realized by Hale on this note is:
7. Blueprint, Inc. signed a note payable to its bank for p10, 000. Accrued interest on
the note on February 28, 2004 amounts to P250. The note is secured by inventory
with a book value of P12, 000. The inventory is sold for P8, 000 and unsecured
creditors receive 30% of their claims. The bank should receive the ff. amount in
settlement of eh note and interest:
8. The trust for Ardolio, Inc. prepares a statement of affairs which shows that
unsecured creditors claims total P60, 000 may expect to receive approximately
P36, 000 if assets are sold for eh benefit of creditors.
Michael is an employee who is owed P750
Meldcan holds a note for P1, 000 on which interest of P50 is
accrued; nothing has been pledged on the note.
Compboy holds a note of P6, 000 on which interest of p300 is
accrued: securities with a book value of P6, 500 and a present
market value of P5, 000 are pledged on the note.
