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A company preparing for a Chapter 7 liquidation has the following liabilities: Note payable A of $104,000 secured by land having a book value
A company preparing for a Chapter 7 liquidation has the following liabilities: Note payable A of $104,000 secured by land having a book value of $57,000 and a fair value of S77,OOO_ Note payable B of $134,000 secured by a building having a $67,000 book value and a $47,000 fair value. Note payable C of $67,000. unsecured. Administrative expenses payable of S27,OOO_ Accounts payable of S127,OOO. Income taxes payable of S37,OOO_ The company also has these other assets: Cash ofS17,OOO_ Inventory of S114.OOO but with a net realizable value of $67,000. Equipment of S104,OOO but with a net realizable value of S57,OOO_ How much will each of the company's liabilities be paid at liquidation? Payment on note payable A Payment on note payable 8 Payment on note payable C Payment on administrative expenses Payment on accounts payable Payment on income taxes payable
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