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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Definitions:

Plant Polysaccharide

Complex carbohydrates found in plants, consisting of long chains of monosaccharide units, and are important for energy storage and structural components.

Cellulose

A complex carbohydrate that forms the primary structural component of plant cell walls and is incapable of being digested by humans.

Carbohydrate

Organic compounds consisting of carbon, hydrogen, and oxygen, usually in a ratio of 1:2:1, serving as a major energy source for the body.

Sucrose

A disaccharide composed of glucose and fructose, commonly known as table sugar.