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A company preparing for a Chapter 7 liquidation has listed the following liabilities: . . Note payable A of $100,000 secured by land having a
A company preparing for a Chapter 7 liquidation has listed the following liabilities: . . Note payable A of $100,000 secured by land having a book value of $55,000 and a fair value of $75,000. Note payable B of $130,000 secured by a building having a $65,000 book value and a $45,000 fair value. Note payable C of $65,000, unsecured. Administrative expenses payable of $25,000. Accounts payable of $125,000. Income taxes payable of $35,000. . The company also has these other assets: . Cash of $15,000. Inventory of $110,000 but with a net realizable value of $65,000. Equipment of $100,000 but with a net realizable value of $55,000. . Based on this information, how much will each of the company's liabilities be paid at liquidation? Amount Payment on note payable A
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