A company that was to be liquidated had the following liabilities:

Income Taxes $ 10,000 Notes

Payable secured by land 100,000

Accounts Payable 50,000

Salaries Payable ($12,000 for Employee #1 and $2,000 for Employee #2) 14,000

Administrative expenses for liquidation 20,000

The company had the following assets: Book Value Fair Value

Current Assets $100,000 95,000

Land 50,000 75,000

Building 150,000 200,000

Total liabilities with priority are calculated to be what amount?

A) $ 19,000.

B) $ 37,950.

C) $ 43,725.

D) $ 44,000.