Mondesto Company has the following debts: Unsecured creditors $ 255,000 Liabilities with priority 135,000 Secured liabilities:...
Mondesto Company has the following debts:
| Unsecured creditors | $ | 255,000 | |
| Liabilities with priority | 135,000 | ||
| Secured liabilities: | |||
| Debt 1, $260,000; value of pledged asset | 205,000 | ||
| Debt 2, $220,000; value of pledged asset | 125,000 | ||
| Debt 3, $145,000; value of pledged asset | 190,000 | ||
The company also has a number of other assets that are not pledged in any way. The creditors holding Debt 2 want to receive at least $182,000.
For how much do these free assets have to be sold so that the creditors associated with Debt 2 receive exactly $182,000?
Homework Answers
AVAILABLE INFORMATION
Value of the debt=$220,000
Value of the pledged asset=$125.000
Creditors min demand for repayment of debt=$182,000
so now,
Remaining money=$(182,000-125,000)
=$57000
Add Answer to:
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