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

Income Taxes	$	10,000
Notes Payable secured by land		100,000
Accounts Payable		44,000
Salaries Payable ($16,000 for Employee #1 and $4,000 for Employee #2)		20,000
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?

Multiple Choice

• $ 30,000.

• $ 36,850.

• $ 46,850.

• $ 50,000.

• $150,000.

  I know that the answer is not 46,850