A Bankrupt Tour Operator Has Assets of $485,000,made Up of a Boat

question 14

Multiple Choice

A bankrupt tour operator has assets of $485,000,made up of a boat worth $400,000,and prepaid docking rights worth $85,000.Claims include a security interest by a bank for $425,000 in the boat,$25,000 in unpaid taxes,and $25,000 owed to each of two general creditors.Each general creditor will receive

• A)$17,500.
• B)$20,000.
• C)$20,000,with $20,000 to taxes.
• D)$21,250.
• E)$21,250,with $21,250 to taxes.

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