Able Has an Allowed Claim of $5,000 Against the Estate

question 52

Multiple Choice

Able has an allowed claim of $5,000 against the estate of Wallace and has a security interest in his art collection in the amount of $3,000 of the $5,000 claim.Able:

• A) will recover nothing in the bankruptcy proceeding.
• B) will recover $5,000 in the bankruptcy proceeding.
• C) has a secured claim in the amount of $3,000 and an unsecured claim in the amount of $2,000.
• D) has a secured claim in the amount of $5,000.

---

Definitions:

Illiteracy

The inability to read or write, often impacting an individual's ability to engage fully in society, access education, and secure employment.

Tariff Exemption

A waiver of customs duties typically levied on imported goods, often granted to promote trade or address specific economic needs.

Cereals

Grasses cultivated for the edible components of their grain, like wheat, maize, rice, and oats, which are a staple food in many cultures.

Protectionism

A call for tariffs and favourable treatments to protect domestic firms from foreign competition.