Administrative expenses in connection with the liquidation are estimated to be $45,000.

BookValue

NetRealizableValue

Cash$ 29,000 $29,000

Accounts receivable55,000 41,000

Inventory68,000 54,000

Supplies26,000 0

Investments25,000 31,000

Land83,000 95,000

Buildings113,000 91,000

Equipment73,000 58,000

Notes payable (secured by land)88,000

Notes payable (secured by buildings)124,000

Bonds payable (secured by equipment)161,000

Accounts payable93,000

Salaries payable (two weeks' salary for three employees)29,000

Taxes payable19,300

What is the amount of money that each class of creditors can anticipate receiving?

Free assets$ 162,000selected answer correct

Liabilities with priority $93,300selected answer correct

Free assets after payment of liabilities with priority $68,700selected answer correct

Unsecured liabilities---------------

Payment on notes payable (secured by land)-------------

Payment on notes payable (secured by buildings)------------------

Payment on bonds payable--------------

Payment on accounts payable (unsecured)-------------

Payment of salaries payable------------

Payment of taxes payable----------------

Payment of administrative expenses---------