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A company preparing for a Chapter 7 liquidation has the following liabilities: Note payable A of $98,000 secured by land having a book value of

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

  • Note payable A of $98,000 secured by land having a book value of $54,000 and a fair value of $74,000.
  • Note payable B of $128,000 secured by a building having a $64,000 book value and a $44,000 fair value.
  • Note payable C of $64,000, unsecured.
  • Administrative expenses payable of $24,000.
  • Accounts payable of $124,000.
  • Income taxes payable of $34,000.

The company also has these other assets:

  • Cash of $14,000.
  • Inventory of $108,000 but with a net realizable value of $64,000.
  • Equipment of $98,000 but with a net realizable value of $54,000.

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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