Question
A company preparing for a Chapter 7 liquidation has listed the following liabilities: Note payable A of $116,000 secured by land having a book
A company preparing for a Chapter 7 liquidation has listed the following liabilities: Note payable A of $116,000 secured by land having a book value of $63,000 and a fair value of $83,000. Note payable B of $146,000 secured by a building having a $73,000 book value and a $53,000 fair value. Note payable C of $73,000, unsecured. Administrative expenses payable of $33,000. Accounts payable of $133,000. Income taxes payable of $43,000. The company also has these other assets: Cash of $23,000. Inventory of $126,000 but with a net realizable value of $73,000. Equipment of $116,000 but with a net realizable value of $63,000. Based on this information, how much will each of the company's liabilities be paid at liquidation? Payment on note payable A Payment on note payable B Payment on note payable C Payment on administrative expenses Payment on accounts payable Payment on income taxes payable Amount
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