Wright Company Recently Petitioned for Bankruptcy and Is Now in the Process

question 29

Multiple Choice

Wright Company recently petitioned for bankruptcy and is now in the process of preparing a statement of affairs.The carrying values and estimated fair values of the assets of Wright Company are as follows:
Debts of Wright are as follows:

-Based on the preceding information,what is the total amount of unsecured claims?

• A)$52,000
• B)$71,000
• C)$75,000
• D)$95,000

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Definitions:

Accounting Equation

The foundational principle of accounting expressing that assets equal the sum of liabilities and shareholder's equity.

Purchased Equipment

Fixed assets acquired by a company for use in the production or supply of goods and services, not for resale.

Accounting Equation

The fundamental equation of accounting, represented as Assets = Liabilities + Equity, serving as the foundation for double-entry bookkeeping.

Utility Bill

A statement of charges incurred for services such as electricity, gas, water, or sewage.