Wright Company recently petitioned for bankruptcy and is now in the process of preparing a statement of affairs. The carrying values and estimated fair values of the assets of Wright Company are as follows: Carrying ValueFair ValueCash $10,000  $10,000 Accounts Receivable  60,000   20,000 Inventory  70,000   40,000 Land  90,000   75,000 Building (net)  200,000   150,000 Equipment (net)  80,000   25,000 Total $510,000  $320,000 Debts of Wright are as follows: Accounts Payable$40,000 Wages Payable (all have priority) 6,000 Taxes Payable 12,000 Notes Payable (secured by receivables and inventory) 90,000 Interest on Notes Payable 5,000 Bonds Payable (secured by land and buildings) 200,000 Interest on Bonds Payable 8,000 Total$361,000 Based

on the preceding information, what is the estimated dividend percentage?

A. 45 percent
B. 61 percent
C. 55 percent
D. 69 percent


Answer: A

Business

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