Partnership and Bankruptcy #1

A Company that was formed to be liquidated had the following liabilities:

Income Taxes $ 10,000

Notes Payable Secured by land $ 100,000

Accounts Payable $ 50,000

Salaries payable (12,000 for Employee #1 and $ 2,000 for Employee # 2) $ 14,000 Administrative expenses and 20,000 for liquidation

The company had the following Assets: Book Value Fair Value

Current Assets $100,000 $95,000

Land $ 50,000 $ 75,000

Building $150,000 $ 200,000

Assets available for Unsecured Creditors after payment of liabilities with priorty are calculated to be what amount?

$ 247,050

$ 275,000

$ 226,000

$ 251,275

$ 251,000