The Acme Corporation has been acquired by the Conglomerate Corporation. To help finance the takeover, Conglomerate is going to liquidate the overfunded portion of Acme's pension fund. The assets listed below are going to be liquidated. Listed are their face values, liquidation values today, and their anticipated liquidation values one year from now (their fair market values). Face Value Current Liquidation Value One-Year Liquidation Value $ 22,000 $ 21,900 $ 22,500 2,900 26,000 Asset IBM stock GE bonds 4.000 2,000 Treasury securities 27,000 25,000 Calculate the one-year liquidity index for these securities.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Acme Corporation has been acquired by the Conglomerate Corporation. To help finance the takeover, Conglomerate is going to
liquidate the overfunded portion of Acme's pension fund. The assets listed below are going to be liquidated. Listed are their face values,
liquidation values today, and their anticipated liquidation values one year from now (their fair market values).
Face Value Current Liquidation Value One-Year Liquidation Value
$ 22,000 $ 21,900
$ 22,500
Asset
IBM stock
GE bonds
4,000
2,000
Treasury securities 27,000
Calculate the one-year liquidity index for these securities.
25,000
2,900
26,000
Transcribed Image Text:The Acme Corporation has been acquired by the Conglomerate Corporation. To help finance the takeover, Conglomerate is going to liquidate the overfunded portion of Acme's pension fund. The assets listed below are going to be liquidated. Listed are their face values, liquidation values today, and their anticipated liquidation values one year from now (their fair market values). Face Value Current Liquidation Value One-Year Liquidation Value $ 22,000 $ 21,900 $ 22,500 Asset IBM stock GE bonds 4,000 2,000 Treasury securities 27,000 Calculate the one-year liquidity index for these securities. 25,000 2,900 26,000
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