A Company that was to be liquidated had the following liabilities: Income Taxes 10,000 Notes Payable secured by land 100,000 Accounts Payable 251,050 Salaries Payable 12,950 Administrative expenses or liquidation 20,000 The Company had the following assets: Book Value Fair Value Current assets 100,000 95,000 Land 50,000 75,000 Building 150,000 200,000 QUESTION: Determine the total net free assets.
A Company that was to be liquidated had the following liabilities: Income Taxes 10,000 Notes Payable secured by land 100,000 Accounts Payable 251,050 Salaries Payable 12,950 Administrative expenses or liquidation 20,000 The Company had the following assets: Book Value Fair Value Current assets 100,000 95,000 Land 50,000 75,000 Building 150,000 200,000 QUESTION: Determine the total net free assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A Company that was to be liquidated had the following liabilities:
| Income Taxes | 10,000 |
| Notes Payable secured by land | 100,000 |
| Accounts Payable | 251,050 |
| Salaries Payable | 12,950 |
| Administrative expenses or liquidation | 20,000 |
The Company had the following assets:
| Book Value | Fair Value | |
| Current assets | 100,000 | 95,000 |
| Land | 50,000 | 75,000 |
| Building | 150,000 | 200,000 |
QUESTION:
Determine the total net free assets.
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