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The Walston Company is to be liquidated and has the following liabilities: Income taxes $ 9,400 Notes payable (secured by land) 144,000 Accounts payable 97,000
| The Walston Company is to be liquidated and has the following liabilities: |
| Income taxes | $ | 9,400 |
| Notes payable (secured by land) | 144,000 | |
| Accounts payable | 97,000 | |
| Salaries payable (evenly divided between two employees) | 18,000 | |
| Bonds payable | 82,000 | |
| Administrative expenses for liquidation | 32,000 | |
| The company has the following assets: |
| Book Value | Fair Value | |||
| Current assets | $ | 92,000 | $ | 47,000 |
| Land | 112,000 | 102,000 | ||
| Buildings and equipment | 112,000 | 145,000 | ||
| How much money will the holders of the notes payable collect following liquidation? |
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The Lakeside Company Case Studies In Auditing
Authors: John Trussel, J. Douglas Frazer
12th Edition
0132567253, 978-0132567251
