The Walston Company is to be liquidated and has the following liabilities: Income taxes . . . . . . . . . . . $ 8,000Notes payable (secured by land) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000 Accounts payable . . . . . . . . 85,000 Salaries payable (evenly divided between two employees) . . . . . . . 6,000Bonds payable . . . . . . . . . . . . 70,000 Administrative expenses for liquidation . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 The company has the following assets: Book Value Fair Value Current Assets $80000 $35000 Land 100000 90000 Buildings and Equipment 100000 110000 How much money will the holders of the notes payable collect following liquidation?
The Walston Company is to be liquidated and has the following liabilities: Income taxes . . . . . . . . . . . $ 8,000Notes payable (secured by land) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000 Accounts payable . . . . . . . . 85,000 Salaries payable (evenly divided between two employees) . . . . . . . 6,000Bonds payable . . . . . . . . . . . . 70,000 Administrative expenses for liquidation . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 The company has the following assets: Book Value Fair Value Current Assets $80000 $35000 Land 100000 90000 Buildings and Equipment 100000 110000 How much money will the holders of the notes payable collect following liquidation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Walston Company is to be liquidated and has the following liabilities:
Income taxes . . . . . . . . . . . $ 8,000
Notes payable (secured by land) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Accounts payable . . . . . . . . 85,000
Salaries payable (evenly divided between two employees) . . . . . . . 6,000
Bonds payable . . . . . . . . . . . . 70,000
Administrative expenses for liquidation . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
The company has the following assets:
| Book Value | Fair Value | |
| Current Assets | $80000 | $35000 |
| Land | 100000 | 90000 |
| Buildings and Equipment | 100000 | 110000 |
How much money will the holders of the notes payable collect following liquidation?
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