Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a company preparing for a chapter 7 liquidation ha

A company preparing for a Chapter 7 liquidation has the following liabilities: Note payable A of $126,000...

70.2K

Verified Solution

Question

Finance

A company preparing for a Chapter 7 liquidation has thefollowing liabilities:

Note payable A of $126,000 secured by land having a book valueof $68,000 and a fair value of $88,000.

Note payable B of $156,000 secured by a building having a$78,000 book value and a $58,000 fair value.

Note payable C of $78,000, unsecured.

Administrative expenses payable of $38,000.

Accounts payable of $138,000.

Income taxes payable of $48,000.

The company also has these other assets:

Cash of $10,400.

Inventory of $136,000 but with a net realizable value of$78,000.

Equipment of $126,000 but with a net realizable value of$68,000.

How much will each of the company's liabilities be paid atliquidation?

Notes Payable A =

Notes Payable B =

Note Payable C =

Payments on administration expenses = $38,000

Payment on accounts payable =

Payments on income taxes payable = $48,000

Answer & Explanation Solved by verified expert
4.1 Ratings (464 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Beano Ltd manufactures beanbags. The company’s variable costs are $15 per unit and fixed operating costs...

Finance
Q

For this discussion, you will explain the role of management professionals with regard to accounting and...

Accounting
Q

How many of the reforms set forth in the Affordable Care Act have been implemented, how...

Operations Management
Q

1) When viewing a mixed culture of bacteria under a microscope, you notice that there is...

Biology
Q

A sample of an unknown gas with a mass of 4.67 goccupies a volume of 1.88...

Chemistry
Q

Solve for all values of x by factoring.x + 20x + 72 = 3x

Basic Math
Q

Use the graph of the function f shown in the figure to the right to...

Calculus
Q

Finding antiderivatives Use what you know about derivatives to finc all antiderivatives of the following...

Calculus
Q

Calculate the current breakeven car washes (dollars & car washes), margin of safety and degree...

Accounting
Q

Which of the following types of transactions would not potentially be reported as expenditures in...

Accounting
Q

Question The following information was provided to your relating the farming operations of Wame....

Accounting
Q

E5.9 (LO 4), AP The following selected accounts from Orlando Corporation's general ledger are for...

Accounting