LD Inc Declared Bankruptcy Through a Chapter 7 Filing

question 64

Multiple Choice

LD Inc. declared bankruptcy through a Chapter 7 filing. Consider the following data in millions of dollars and determine the funds available for secured creditors.
-Proceeds from the liquidation of assets = $395
-First mortgage = $102
-Administration expenses associated with the bankruptcy = $5
-Notes payable to the banks = $205
-Subordinated debentures = $350
-Taxes due to federal, state, and other governmental agencies = $17
-Wages due employees (2,000 employees) = $6

• A) $265
• B) $367
• C) $267
• D) $369

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Definitions:

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Physical Gratification

The satisfaction or pleasure obtained from bodily sensations, often associated with fulfilling basic needs or desires.

Superego

In Freudian psychoanalytic theory, the part of the personality responsible for moral standards and ideals, arising from the internalization of societal and parental values.

Biological Gratification

The fulfillment of biological needs that is essential for the survival and well-being of an organism.