Please provide a detailed answer without skipping steps. Thank you in advance! B

Question

Please provide a detailed answer without skipping steps. Thank you in advance!

Below is a statement of financial affairs created for an insolvent corporation that was beginning the liquidation process (assets were shown at net realizable values): How much money appears to be available for unsecured creditors after payment of liabilities with priority?

Assets pledged with fully secured creditors $260,000 Fully secured liabilities $195,000 Assets pledged with partially secured creditors $494,000 Partially secured liabilities $637,000 Free assets $390,000 Unsecured liabilities with priority $208,000 Unsecured liabilities $650,000

Explanation / Answer

Assets Pledged with fully secured creditors $260,000 Less: Fully secured liabilities paid off $195,000 Assets left after paying fully secured liabilities $65,000 Assets pledged with partially secured creditors $494,000 Assets left after paying fully secured liabilities $65,000 Assets available for Partially Secured Creditors $559,000 Free assets 390000 Total Assets available $949,000 Less: Paid to partially secured creditors $637,000 Assets available for unsecured liabilities on priorty and others $312,000 Less: Paid unsecured liabilities with pririty $208,000 Assets available for unsecured liabilities $104,000 Money available for unsecured Liabilities $104,000

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