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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
| 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? |
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The Evolution Of Audit Thought And Practice
Authors: T. A. Lee
1st Edition
0367502097, 978-0367502096
