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 8 months ago

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