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The Walston Company is to be liquidated and has the following liabilities: Income taxes $ 6,000 Notes payable (secured by land) 150,000 Accounts payable 100,000
| The Walston Company is to be liquidated and has the following liabilities: |
| Income taxes | $ | 6,000 |
| Notes payable (secured by land) | 150,000 | |
| Accounts payable | 100,000 | |
| Salaries payable (evenly divided between two employees) | 21,000 | |
| Bonds payable | 85,000 | |
| Administrative expenses for liquidation | 35,000 | |
| The company has the following assets: |
| Book Value | Fair Value | |||
| Current assets | $ | 95,000 | $ | 50,000 |
| Land | 115,000 | 105,000 | ||
| Buildings and equipment | 115,000 | 150,000 | ||
| How much money will the holders of the notes payable collect following liquidation? |
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A Simplify Way Of Practicalise Auditing Profession
Authors: DR LUKMAN A ABATAN
1st Edition
B09YVKHT6X, 979-8800165050
