Problem 13-26 (LO 13-3, 13-5, 13-6)

The Walston Company is to be liquidated and has the following liabilities:

Income taxes	$	8,000
Notes payable (secured by land)		120,000
Accounts payable		85,000
Salaries payable (evenly divided between two employees)		6,000
Bonds payable		70,000
Administrative expenses for liquidation		20,000

The company has the following assets:

	Book Value		Fair Value
Current assets	$	80,000	$	35,000
Land		100,000		90,000
Buildings and equipment		100,000		110,000

How much money will the holders of the notes payable collect following liquidation?