Land with a Net Realizable Value of $150,000 Is Used

question 13

Multiple Choice

Land with a net realizable value of $150,000 is used as collateral against an $85,000 notes payable. In which section of a Statement of Financial Affairs would the land appear?

• A) Pledged assets with partially secured creditors.
• B) Liabilities with priority.
• C) Free assets.
• D) Unsecured creditors.
• E) Pledged assets with fully secured creditors.

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Definitions:

AFL

The American Federation of Labor is a nationwide coalition of labor unions within the United States.

CIO

Congress of Industrial Organizations, historically a federation of labor unions in the United States.

Taft-Hartley Act

A federal act passed in the United States in 1947 that serves to reduce the power and activities of labor unions.

Strikes

A work stoppage caused by the mass refusal of employees to work, typically aiming to enforce specific demands regarding their employment condition.