Quincy Corp

question 20

Multiple Choice

Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities: The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000. How much should Quincy expect to pay on the accounts payable?

• A) $240,000.
• B) $128,000.
• C) $120,000.
• D) $96,000.
• E) $146,000. Assets available for priority claims and unsecured creditors $220,000 - priority claims $100,000 = $120,000 $120,000/$300,000 unsecured = payment of 40% on unsecured dollars. 40% x $240,000 A/P = $96,000

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Definitions:

Psychosocial Development

The process of personality and emotional growth that occurs through interactions with others across the lifespan.

Transitive Inference

A form of logical reasoning that allows one to deduce a relation between two items based on their relations to a third item.

Seriation

The cognitive ability to arrange objects in order by size, location, or another attribute, a skill that develops in early childhood.

Abstract Reasoning

The process of thinking about things that are not physically present, focusing on patterns and relationships.