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Ohio Corporation Is Being Liquidated Under Chapter 7 of the Bankruptcy

question 44

Essay

Ohio Corporation is being liquidated under Chapter 7 of the Bankruptcy Act.The trustee has determined that the unsecured claims will receive $.05 on the dollar.Lender Bank holds a $100,000 mortgage note receivable from Ohio that is secured by equipment with a $120,000 book value and a $90,000 fair value,and a second mortgage on the same equipment amounting to $50,000.
Required:
How much of the mortgage receivable will be recovered by Lender?


Definitions:

REM Sleep

Rapid Eye Movement (REM) Sleep is a stage of sleep characterized by quick, random movements of the eyes, dreaming, and increased brain activity.

Sleep Terrors

Intense episodes of fear that occur during deep sleep, often characterized by screaming, kicking, confusion, and no memory of the event upon waking.

Nightmares

Frightening dreams that occur during REM sleep, often in the morning hours.

Sleep Terrors

Episodes of screaming, intense fear, and flailing while still asleep, often occurring in children.

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