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A company preparing for a Chapter 7 liquidation has listed the following liabilities: Note payable A of $108,000 secured by land having a book value
A company preparing for a Chapter 7 liquidation has listed the following liabilities: Note payable A of $108,000 secured by land having a book value of $59.000 and a fair value of $79,000. Note payable B of $138,000 secured by a building having a $69,000 book value and a $49,000 fair value. Note payable C of $69,000, unsecured. Administrative expenses payable of $29,000. Accounts payable of $129,000. Income taxes payable of $39,000. The company also has these other assets: Cash of $19,000 Inventory of $118.000 but with a net realizable value of $69,000. Equipment of $108,000 but with a net realizable value of $59,000. Based on this information, how much will each of the company's liabilities be paid at liquidation? Amount 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 $ 29,000 $ 39,000
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