8. Leth Company is currently undergoing liquidation proceedings and is consulting with potential buyers about the amount it can recover from the sale of its assets with book value of P7,000,000. Based on the quotations, the assets can fetch price of P6,000,000 if it will be sold within one year as negotiations and bidding will allow interested buyers to compete for the purchase. An interested buyer is willing to pay for P4,000,000 to purchase the assets now. Leth Company has liabilities to settle amounting to P2,000,000. How much is the orderly liquidation value of Leth Company? a. Php 6,000,000 b. Php 5,000,000 c. Php 4,000,000 9. Refer to Leth Company. How much is the forced liquidation value of Leth Company?
8. Leth Company is currently undergoing liquidation proceedings and is consulting with potential buyers about the amount it can recover from the sale of its assets with book value of P7,000,000. Based on the quotations, the assets can fetch price of P6,000,000 if it will be sold within one year as negotiations and bidding will allow interested buyers to compete for the purchase. An interested buyer is willing to pay for P4,000,000 to purchase the assets now. Leth Company has liabilities to settle amounting to P2,000,000. How much is the orderly liquidation value of Leth Company? a. Php 6,000,000 b. Php 5,000,000 c. Php 4,000,000 9. Refer to Leth Company. How much is the forced liquidation value of Leth Company?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9. Help me to answer the item #9 with solution. thank you
Transcribed Image Text:8. Leth Company is currently undergoing liquidation proceedings
and is consulting with potential buyers about the amount it can
recover from the sale of its assets with book value of P7,000,000.
Based on the quotations, the assets can fetch price of P6,000,000 if
it will be sold within one year as negotiations and bidding will allow
interested buyers to compete for the purchase. An interested buyer
is willing to pay for P4,000,000 to purchase the assets now. Leth
Company has liabilities to settle amounting to P2,000,000. How
much is the orderly liquidation value of Leth Company?
a. Php 6,000,000
b. Php 5,000,000
c. Php 4,000,000
9. Refer to Leth Company. How much is the forced liquidation value
of Leth Company?
O 000 000
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