Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000: Cash . . . . . . . . . . . . . . . . . . . . $ 32,000Accounts receivable . . . . . . . . 68,000 (valued at $36,000)Inventory .. 78,000 (valued at $64,000)Land (secures note A) . . . . . . 208,000 (valued at $168,000)Building (secures bonds) . . . . 408,000 (valued at $336,000)Equipment . . . . . . . . . . . . . 128,000 (value unknown)Accounts payable . . . . . . . . . 188,000Taxes payable to government .. 28,000Note payable A . . . . . . . . . . .. 186,000Note payable B . . . . . . . . . . . 258,000Bonds payable . . . . . . . . . . . 308,000 The holders of note payable B want to collect at least $129,000. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values
at that time. Administrative expenses are estimated to be $20,000:
Cash . . . . . . . . . . . . . . . . . . . . $ 32,000
Accounts receivable . . . . . . . . 68,000 (valued at $36,000)
Inventory .. 78,000 (valued at $64,000)
Land (secures note A) . . . . . . 208,000 (valued at $168,000)
Building (secures bonds) . . . . 408,000 (valued at $336,000)
Equipment . . . . . . . . . . . . . 128,000 (value unknown)
Accounts payable . . . . . . . . . 188,000
Taxes payable to government .. 28,000
Note payable A . . . . . . . . . . .. 186,000
Note payable B . . . . . . . . . . . 258,000
Bonds payable . . . . . . . . . . . 308,000
The holders of note payable B want to collect at least $129,000. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
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