Question
he Walston Company is to be liquidated and has the following liabilities: Income taxes $ 8,400 Notes payable (secured by land) 164,000 Accounts payable 107,000
he Walston Company is to be liquidated and has the following liabilities:
| Income taxes | $ | 8,400 |
| Notes payable (secured by land) | 164,000 | |
| Accounts payable | 107,000 | |
| Salaries payable (evenly divided between two employees) | 28,000 | |
| Bonds payable | 92,000 | |
| Administrative expenses for liquidation | 42,000 | |
| The company has the following assets: |
| Book Value | Fair Value | |||
| Current assets | $ | 102,000 | $ | 57,000 |
| Land | 122,000 | 112,000 | ||
| Buildings and equipment | 122,000 | 172,000 | ||
How much money will the holders of the notes payable collect following liquidation?
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
22nd Edition
324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844
