Uptown Cleaners is being liquidated. The building has been sold for a net of $670,000 but the mortgage due is $738,000. The remaining assets were sold with net proceeds of $154,000. Administrative costs, wages and benefits, and consumer claims equal $136,000. The firm also owes $58,000 in taxes. The secured claims total $46,000 and the unsecured claims are $138,000. What percentage of their total claims will the secured creditors be paid

Question

Kallie Zhang

Business

21 July, 22:43

Uptown Cleaners is being liquidated. The building has been sold for a net of $670,000 but the mortgage due is $738,000. The remaining assets were sold with net proceeds of $154,000. Administrative costs, wages and benefits, and consumer claims equal $136,000. The firm also owes $58,000 in taxes. The secured claims total $46,000 and the unsecured claims are $138,000. What percentage of their total claims will the secured creditors be paid

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Miranda Cannon · Answer 1

zero, none

Explanation:

The mortage hodler will receive the proceeds from the building and burden the loss as their debt was supposed to be paid with the building the additional difference will be unsecured.

Then the 154,000 proceeds from assets will pay up the wages, administrative cost and consumer claim and tax debt:

as these add up to : 136,000 + 58,000 = 194,000

being larget than the remainining funds there is, no remaining fund for neither, secured and unsecured creditors.