A Company That Was to Be Liquidated Had the Following

question 37

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: $$\begin{array} { | l | c | c | c | c | } \hline & & \text { Book } & & \text { Fair } \\\hline & & \text { Value } & & \text { Value } \\\hline \text { Current assets } & \$ & 104,000 & \$ & 42,900 \\\hline \text { Land } & & 130,000 & & 117,000 \\\hline \text { Buildings \& equipment } & & 130,000 & & 143,000 \\\hline\end{array}$$
-Required:
Assets available for unsecured creditors after payment of liabilities with priority are calculated to be what amount?

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Definitions:

Baby Boomer Generation

The Baby Boomer generation refers to people born during the post-World War II baby boom between 1946 and 1964, known for their significant impact on the economy and culture.

Pension Plan

A retirement plan that requires an employer to contribute to a pool of funds set aside for a worker's future benefit.

Cost-of-Living Adjustment

An increase in income or benefits to match the rise in the cost of living, helping individuals maintain their purchasing power.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.