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The Walston Company is to be liquidated and has the following liabilities: Income taxes $ 5,800 Notes payable (secured by land) 148,000 Accounts payable 99,000
| The Walston Company is to be liquidated and has the following liabilities: |
| Income taxes | $ | 5,800 |
| Notes payable (secured by land) | 148,000 | |
| Accounts payable | 99,000 | |
| Salaries payable (evenly divided between two employees) | 20,000 | |
| Bonds payable | 84,000 | |
| Administrative expenses for liquidation | 34,000 |
| The company has the following assets: |
| Book Value | Fair Value | |||
| Current assets | $ | 94,000 | $ | 49,000 |
| Land | 114,000 | 104,000 | ||
| Buildings and equipment | 114,000 | 147,000 |
| How much money will the holders of the notes payable collect following liquidation? |
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Managerial Accounting
Authors: Sivaramakrishna, Ramji Balakrishnan
1st Edition
0471467855, 978-0471467854
