Question 19 A company that was to be liquidated had the following liabilities: Income Taxes Notes Payable secured by land Accounts Payable Salaries Payable ($12.000 from Employee #1 and $2,000 for Employee #2) Administrative expenses for liquidation The company had the following assets Current Assets Land Building $ 10,000 100,000 50,000 14,000 20,000 Book Value $100,000 50,000 150,000 Total assets, available to pay liabilities with priority and uns O $ 75,000. O $270,000. O $275,000. O $295,000. $370,000. Fair Value 95,000 75,000 200,000 I creditors, are calculated to be what amount?
Question 19 A company that was to be liquidated had the following liabilities: Income Taxes Notes Payable secured by land Accounts Payable Salaries Payable ($12.000 from Employee #1 and $2,000 for Employee #2) Administrative expenses for liquidation The company had the following assets Current Assets Land Building $ 10,000 100,000 50,000 14,000 20,000 Book Value $100,000 50,000 150,000 Total assets, available to pay liabilities with priority and uns O $ 75,000. O $270,000. O $275,000. O $295,000. $370,000. Fair Value 95,000 75,000 200,000 I creditors, are calculated to be what amount?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Question 19
A company that was to be liquidated had the following liabilities:
Income Taxes
$ 10.000
Notes Payable secured by land
100.000
50,000
Accounts Payable
Salaries Payable ($12.000 from Employee #1
and $2,000 for Employee #2)
Administrative expenses for liquidation
The company had the following assets
Current Assets
Land
Building
14,000
20,000
Book Value
$100,000
50,000
150,000
Fair Value
95,000
75.000
200,000
Total assets, available to pay liabilities with priority and unsecured creditors, are calculated to be what amount?
O $75,000.
O $270,000.
O $275,000.
O $295,000.
$370,000.
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