A company that was to be liquidated had the following liabilities: INCOME TAXES
ID: 2371764 • Letter: A
Question
A company that was to be liquidated had the following liabilities:
INCOME TAXES - 10,400
NOTES PAYABLE (SECURED BY LAND) - 156,000
ACCOUNTS PAYABLE - 107,900
SALARIES PAYABLE TO EMPLOYEES (15,000 FOR JOHN & 2,800 FOR ANN) - 17,800
BONDS PAYABLE - 81,000
ADMINISTRATIVE EXPENSES FOR LIQUIDATION - 26,000
The company had the following assets:
BOOK VALUE FAIR VALUE
CURRENT ASSETS - 104,000 42,900
LAND - 130,000 117,000
BUILDINGS & EQUIPMENT - 130,000 143,000
1.
Total assets available to pay liabilities with priority and unsecured creditors are calculated to be what amount?
2.
Total liabilities with priority are calculated to be what amount?
3.
Required:
Assets available for unsecured creditors after payment of liabilities with priority are calculated to be what amount?
4.
Total unsecured nonpriority liabilities are calculated to be what amount?
5.
Total payment on notes payable is calculated to be what amount? (Round the payout percentage to one decimal place.)
A company that was to be liquidated had the following liabilities:
INCOME TAXES - 10,400
NOTES PAYABLE (SECURED BY LAND) - 156,000
ACCOUNTS PAYABLE - 107,900
SALARIES PAYABLE TO EMPLOYEES (15,000 FOR JOHN & 2,800 FOR ANN) - 17,800
BONDS PAYABLE - 81,000
ADMINISTRATIVE EXPENSES FOR LIQUIDATION - 26,000
The company had the following assets:
Explanation / Answer
1.
Total assets available to pay liabilities with priority and unsecured creditors are calculated to be what amount?
$302900
2.
Total liabilities with priority are calculated to be what amount?
$173800
3.
Required:
Assets available for unsecured creditors after payment of liabilities with priority are calculated to be what amount?Â
$129100
4.
Total unsecured nonpriority liabilities are calculated to be what amount?Â
$214900
5.
Total payment on notes payable is calculated to be what amount? (Round the payout percentage to one decimal place.)
156000
Payout % = 100%
1.
Total assets available to pay liabilities with priority and unsecured creditors are calculated to be what amount?
$302900
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