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Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $30,000:
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $30,000: $ 42,006e Cash Accounts receivable Inventory 78,000 (worth $46,000) 88,000 (worth $74,000) 218,000 (worth Land (secures note A) $178,000) (worth Building (secures bonds) 418,000 $356,000) 138,000 (worth unknown) 198,000 Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable 38,000 206,000 268,000 318,000 The holders of note payable B want to collect at least $120,600 To achieve this goal, how much does the company have to receive in the liquidation of its equipment? ount to be received
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