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A company preparing for a Chapter 7 liquidation has the following liabilities: Note payable A of $104,000 secured by land having a book value of

A company preparing for a Chapter 7 liquidation has the following liabilities:

Note payable A of $104,000 secured by land having a book value of $57,000 and a fair value of $77,000.
Note payable B of $134,000 secured by a building having a $67,000 book value and a $47,000 fair value.
Note payable C of $67,000, unsecured.
Administrative expenses payable of $27,000.
Accounts payable of $127,000.
Income taxes payable of $37,000.

The company also has these other assets:

Cash of $17,000.
Inventory of $114,000 but with fair value of $67,000.
Equipment of $104,000 but with fair value of $57,000.

How much will each of the company's liabilities be paid at liquidation?

image text in transcribed

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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