Question
A company preparing for chapter 7 liquidation has to following liabilities: . Note payable A of $116,000 secured by land having a book value of
A company preparing for chapter 7 liquidation has to following liabilities:
. Note payable A of $116,000 secured by land having a book value of $63,000 and a fair value of $83,000.
. Note payable B of $146,000 secured by a building having a $73,000 book value and a $53,000 fair value.
. Note payable C of $73,000, unsecured.
. Administrative expenses payable of $33,000.
. Accounts payable of $133,000.
Income taxes payable of $43,000.
The company also has these other assets:
. Cash of $ 23,000.
. Inventory of $126,000 but with fair value of $ 73,000
. Equipment of $ 116,000 but with fair value of $ 63,000.
How much will each of the company 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 account payable
Payment on income tax payable
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