A Company That Was to Be Liquidated Had the Following

question 78

Essay

A company that was to be liquidated had the following liabilities: $\begin{array}{|l|r|r|}\hline\text { Income taxes } & \$ & 10,400 \\\hline \text { Notes payable (secured by land) } & & 156,000 \\\hline \text { Accounts payable } & \$ & 107,900 \\\hline \begin{array}{l}\text { Salaries payable to employees ( } \$ 15,000 \text { for John Jay and } \\\$ 2,800 \text { for Ann Still) }\end{array} && 17,800 \\\hline \text { Bonds payable } &&81,000 \\\hline \text { Administrative expenses for liquidation } &&26,000 \\\hline\end{array}$ The company had the following assets: $$\begin{array} { | l | c | c | c | c | } \hline & & \text { Book } & & \text { Fair } \\\hline & & \text { Value } & & \text { Value } \\\hline \text { Current assets } & \$ & 104,000 & \$ & 42,900 \\\hline \text { Land } & & 130,000 & & 117,000 \\\hline \text { Buildings \& equipment } & & 130,000 & & 143,000 \\\hline\end{array}$$
-Total liabilities with priority are calculated to be what amount?

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Definitions:

Law-Breaking

Law-Breaking refers to any action or behavior that violates legal statutes, regulations, or ordinances, resulting in criminal or civil legal actions.

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Pathological Traits

Characteristics or behaviors that are indicative of disease or severe psychological conditions.

Hostility

An attitude or behavior that is aggressively antagonistic, unfriendly, or opposing toward people or ideas.