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The Walston Company is to be liquidated. It has the following liabilities: Income taxes Notes payable (secured by land) Accounts payable Salaries payable (evenly divided
The Walston Company is to be liquidated. It has the following liabilities: Income taxes Notes payable (secured by land) Accounts payable Salaries payable (evenly divided between two employees) Bonds payable Administrative expenses for liquidation The company has the following assets: Current assets Land Buildings and equipment Book Value Total amount collected $ 84,000 104,000 104,000 Fair Value $ 39,000 94,000 123,000 $ 11,800 128,000 89,000 8,000 74,000 24,000 How much money will the holders of the notes payable collect following liquidation?
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