Question
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000:
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000:
| Cash | $ | 32,000 | |
| Accounts receivable | 68,000 | (worth $36,000) | |
| Inventory | 78,000 | (worth $64,000) | |
| Land (secures note A) | 208,000 | (worth $168,000) | |
| Building (secures bonds) | 408,000 | (worth $336,000) | |
| Equipment | 128,000 | (worth unknown) | |
| Accounts payable | 188,000 | ||
| Taxes payable to government | 28,000 | ||
| Note payable A | 186,000 | ||
| Note payable B | 258,000 | ||
| Bonds payable | 308,000 | ||
The holders of note payable B want to collect at least $129,000.
To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
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Internal Auditors Manual And Guide The Practitioners Guide To Internal Auditing
Authors: Milton Stevens Fonorow
1st Edition
0134711947, 978-0134711942
