Eagle Company recently petitioned for bankruptcy and is now in the process of preparing a
statement of affairs. The following information has been assembled for this statement:
Assets Book Value Estimated Current Value
Cash . . . . . . . . . . . . . . . . . . . . P 70,000 P 70,000
Other current assets . . . . . . . 240,000 230,000
Building . . . . . . . . . . . . . . . . . . 600,000 700,000
Land . . . . . . . . . . . . . . . . . . . . 200,000 300,000
Liabilities
Liabilities with priority . . . . . . . . . . . . . . . . . . . . . . . . P 140,000
Mortgage payable (secured by building) . . . . . . 300,000
Note Payable (secured by land) . . . . . . . . . . . . . . 400,000
Unsecured liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
What amount will be paid to the fully secured creditors and the creditors with priority