A Company That Was to Be Liquidated Had the Following

question 2

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 unsecured nonpriority liabilities are calculated to be what amount?

• A) $44,000.
• B) $51,050.
• C) $76,050.
• D) $85,000.
• E) $194,000. Excess of salaries $1,050 + notes pay in excess of security $25,000+ accounts pay $50,000

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Definitions:

Anticipating Emotions

The process of predicting one's emotional reactions to future events or situations.

Affect-as-information Theory

The affect-as-information theory suggests that people use their current emotions as valuable information when making judgments and decisions, assuming these emotions provide cues about the environment.

Affect-as-information Theory

The theory suggesting that people use their current emotional states to make judgments and appraisals, even if they are unaware of those emotional influences.

Current Moods

The emotional state or feeling that a person is experiencing at the present moment.