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The Walston Company is to be liquidated and has the following liabilities: Income taxes $ 8,400 Notes payable (secured by land) 164,000 Accounts payable 107,000
The Walston Company is to be liquidated and has the following liabilities:
| Income taxes | $ | 8,400 |
| Notes payable (secured by land) | 164,000 | |
| Accounts payable | 107,000 | |
| Salaries payable (evenly divided between two employees) | 11,000 | |
| Bonds payable | 92,000 | |
| Administrative expenses for liquidation | 42,000 | |
The company has the following assets:
| Book Value | Fair Value | ||||||
| Current assets | $ | 102,000 | $ | 57,000 | |||
| Land | 122,000 | 112,000 | |||||
| Buildings and equipment | 122,000 | 155,000 | |||||
How much money will the holders of the notes payable collect following liquidation?
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Auditing
Authors: Alan Millichamp, John Taylor
10th Edition
1408044080, 978-1408044087
