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The Walston Company is to be liquidated and has the following liabilities: Income taxes $ 8,800 Notes payable (secured by land) 154,000 Accounts payable 102,000
| The Walston Company is to be liquidated and has the following liabilities: |
| Income taxes | $ | 8,800 |
| Notes payable (secured by land) | 154,000 | |
| Accounts payable | 102,000 | |
| Salaries payable (evenly divided between two employees) | 23,000 | |
| Bonds payable | 87,000 | |
| Administrative expenses for liquidation | 37,000 | |
| The company has the following assets: |
| Book Value | Fair Value | |||
| Current assets | $ | 97,000 | $ | 52,000 |
| Land | 117,000 | 107,000 | ||
| Buildings and equipment | 117,000 | 182,000 | ||
| How much money will the holders of the notes payable collect following liquidation? |
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Winning Your Audit
Authors: Holmes F. Crouch
1st Edition
0945339151, 978-0945339151
