The following items were displayed in the statement of affairs for Lub

QUESTION

The following items were displayed in the statement of affairs for Lubbock Company:Fully secured liabilities . $90,000Partially secured liabilities 12,000Unsecured liabilities without priority 220,000Unsecured liabilities with priority 8,000Assets pledged for fully secured assets 120,000Assets pledged for partially secured assets 6,000Free Assets 120,000Based on the foregoing information prepare a working paper showing the how the estimated amount received from the sale of assets will be distributed to the four classes of creditors.
Assets pledged for fully secured assets $ 120,000 Assets pledged for partially secured assets $ 6,000 Free Assets $ 120,000 Total Assets Available for distribution $ 246,000 Distribution and sequence of payment Fully secured liabilities $ 90,000 Partially secured liabilities $ 12,000 Unsecured¦

liabilities with priority $ 8,000 Cash left after above payments $ 136,000 The balance left will be paid to unsecured liabilities without priority Unsecured liabilities without priority $ 136,000

ANSWER:

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