Oceana Corporation Is Being Liquidated Under Chapter 7 of the Bankruptcy

question 20

Essay

Oceana Corporation is being liquidated under Chapter 7 of the Bankruptcy Act.The trustee has determined that the unsecured claims will receive $.35 on the dollar.Loans-R-Us holds a $1,000,000 mortgage note receivable from Oceana that is secured by building and equipment with a $1,200,000 book value and a $900,000 fair value.
Required:
How much of the mortgage receivable will Loans-R-Us recover?

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The amount of a product or service exceeding the demand for it, typically resulting in lower prices.

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