A company is to be liquidated and has the following liabilities:
|
Income taxes |
$8,000 |
|
Notes payable (secured by land) |
120,000 |
|
Accounts payable |
85,000 |
|
Salaries payable (evenly divided between two employees) |
6,000 |
|
Bonds payable |
70,000 |
|
Administrative expenses for liquidation |
20,000 |
|
Book Value |
Fair Value |
|
|
Current assets |
$80,000 |
$35,000 |
|
Land |
100,000 |
90,000 |
|
Buildings and equipment |
100,000 |
110,000 |
How much money will the holders of the notes payable collect following the liquidation?