A Company That Was to Be Liquidated Had the Following

question 18

Multiple Choice

A company that was to be liquidated had the following liabilities: $$\begin{array} { | l | r | c | } \hline \text { Income Taxes } & \$ 10,000 & \\\hline \text { Notes Payable secured by land } & 100,000 & \\\hline \text { Accounts Payable } & 50,000 & \\\hline \text { Salaries Payable } ( \$ 12,000 \text { from Employee \#1 } & & \\\hline \text { and } \$ 2,000 \text { for Employee } \# 2 ) & 14,000 & \\\hline \text { Administrative expenses for liquidation } & 20,000 & \\\hline & & \\\hline \text { The company had the following assets: } & \text { Book Value } & \text { Fair Value } \\\hline \text { Current Assets } & \$ 100,000 & 95,000 \\\hline \text { Land } & 50,000 & 75,000 \\\hline \text { Building } & 150,000 & 200,000 \\\hline\end{array}$$
-Total assets, available to pay liabilities with priority and unsecured creditors, are calculated to be what amount?

• A) $ 75,000.
• B) $270,000.
• C) $275,000.
• D) $295,000.
• E) $370,000. (200,000+95,000)

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Definitions:

Carrying Capacity

The maximum population size of a biological species that an environment can sustain indefinitely, given the available resources.

Population Scientists

Experts who study the size, structure, and distribution of populations, and how populations change over time.

Population Trends

The patterns and changes in population size and composition over time, influenced by factors such as birth rates, death rates, and migration.

Land Ownership

The legal right to possess, use, and control a piece of land, subject to certain conditions and restrictions defined by law.