Question
The Walston Company is to be liquidated and has the following liabilities: Income taxes $ 9,600 Notes payable (secured by land) 156,000 Accounts payable 103,000
The Walston Company is to be liquidated and has the following liabilities:
| Income taxes | $ | 9,600 |
| Notes payable (secured by land) | 156,000 | |
| Accounts payable | 103,000 | |
| Salaries payable (evenly divided between two employees) | 24,000 | |
| Bonds payable | 88,000 | |
| Administrative expenses for liquidation | 38,000 |
The company has the following assets:
| Book Value | Fair Value | ||||||
| Current assets | $ | 98,000 | $ | 53,000 | |||
| Land | 118,000 | 108,000 | |||||
| Buildings and equipment | 118,000 | 162,000 | |||||
How much money will the holders of the notes payable collect following liquidation?
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Practical Steps To Forensic Auditing And Fraud Investigation
Authors: Enape Victoria Ayishetu
1st Edition
1669867048, 978-1669867043
