A company that was to be liquidated had the following liabilities:

Income Taxes	$10,000
Notes Payable secured by land	100,000
Accounts Payable	50,000
Salaries Payable ($12,000 for Employee # 1 and $2,000 for Employee # 2)	14,000
Administrative expenses for liquidation	20,000
The company had the following assets:	Book Value	Fair Value
Current Assets	$100,000	95,000
Land	50,000	75,000
Building	150,000	200,000

1.

Total assets, available to pay liabilities with priority and unsecured creditors, are calculated to be what amount?

a. $75,000.

b. $270,000.

c. $275,000.

d. $295,000.

e. $370,000.

2.Assets available for unsecured creditors after payments of liabilities with priority are calculated to be what amount?

a. $226,000.

b. $247,050.

c. $251,000.

d. $251,275.

e. $275,000.

3. A Chapter 7 bankruptcy is a(n)

a. Involuntary reorganization.

b. Bankruptcy forced by a company's creditors.

c. Liquidation.

d. Bankruptcy in which all creditors receive payment in full.

e. Voluntary reorganization.