Question

For each of the following situations, select the best answer concerning the classification of the liability.

(A.) Unsecured without priority

(B.) Unsecured with priority

(C.) Partially secured

(D.) Fully secured

1. Land and building valued at $427,000 mortgaged by a bank loan in the amount of $517,000.
2. Equipment valued at $73,000 securing a loan to an individual in the amount of $32,100.
3. Electric bill owed to a local utility.
4. Unpaid defined contribution pension plan payments in the amount of $4,000 (none in excess of $375 per employee.)
5. Fees charged by bankruptcy trustee.

Answer 1

Particulars	Category
Land and building valued at $427,000 mortgaged by a bank loan in the amount of $517,000.	(D.) Fully secured
Equipment valued at $73,000 securing a loan to an individual in the amount of $32,100.	(C.) Partially secured
Electric bill owed to a local utility.	(B.) Unsecured with priority
Unpaid defined contribution pension plan payments in the amount of $4,000 (none in excess of $375 per employee.)	(B.) Unsecured with priority
Fees charged by bankruptcy trustee.	(B.) Unsecured with priority

answered by: anonymous