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A company that was to be liquidated had the following liabilities:   Income taxes 10000 Note Payable...

A company that was to be liquidated had the following liabilities:


  Income taxes

10000

Note Payable (secured by building)

200000

Account Payable

100000

Salaries (Ahmed 20000 and Salem 2000)

22000

Bond payable

90000

Admin expenses for liquidation

30000


The company had the following assets:

Item

Book-value

Fair value

Current Assets

100000

45000

Pre-paid Assets

2000

1800

Building

180000

155000

Land

120000

150000

  
Maximum employees’ payment does not excess $12475.


a. Calculate total assets available to pay liabilities with priority and unsecured creditors?

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Expert Solution

ekkarill92 answered 1 year ago
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