Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor inventory acquisitions that have loaded the store with unsalable merchandise. Because of the drop in revenues, the company is now insolvent. The following is a trial balance as of March 14, 2020. Accounts payable Accounts receivable Accumulated depreciation, building Accumulated depreciation, equipment Additional paid-in capital Advertising payable Building Cash Common stock Equipment Inventory Investments Land Note Payable-Colorado Savings and Loan (secured by lien on land and building) Note Payable-First National Bank (secured by equipment) Payroll taxes payable Retained earnings (deficit) Salaries payable (owed equally to two employees) Totals Debit Credit $ 53,000 $ 65,000 70,000 36,000 28,000 24,000 100,000 21,000 110,000 90,000 140,000 35,000 30,000 90,000 190,000 21,000 166,000 25,000 $647,000 $647,000 Assume that the company will be liquidated and the following transactions will occur: Accounts receivable of $38,000 are collected with remainder written off. All of the company's inventory is sold for $60,000. Additional accounts payable of $30,000 incurred for various expenses, such as utilities and maintenance, are discovered. The land and building are sold for $111,000. The note payable due to the Colorado Savings and Loan is paid. The equipment is sold at auction for only $31,000 with the proceeds applied to the note owed to the First National Bank. The investments are sold for $61,000. Administrative expenses total $40,000 as of July 23, 2020, but no payment has been made yet.