A company preparing for a Chapter 7 liquidation has listed the following liabilities: Note payable A of
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Question:
A company preparing for a Chapter 7 liquidation has listed the following liabilities:
- Note payable A of $92,000 secured by land having a book value of $51,000 and a fair value of $71,000.
- Note payable B of $122,000 secured by a building having a $61,000 book value and a $41,000 fair value.
- Note payable C of $61,000, unsecured.
- Administrative expenses payable of $21,000.
- Accounts payable of $121,000.
- Income taxes payable of $31,000.
The company also has these other assets:
- Cash of $11,000.
- Inventory of $102,000 but with a net realizable value of $61,000.
- Equipment of $92,000 but with a net realizable value of $51,000.
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 - ?
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