ACNT 2333 PRINT UPGRADE
13th Edition
ISBN: 9781260936797
Author: Hoyle
Publisher: MCG
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Textbook Question
Chapter 13, Problem 34P
A company preparing for a Chapter 7 liquidation has the following liabilities:
- Note payable A of $90,000 secured by land having a book value of $50,000 and a fair value of $70,000.
- Note payable B of $120,000 secured by a building having a $60,000 book value and a $40,000 fair value.
- Note payable C of $60,000, unsecured.
- Administrative expenses payable of $20,000.
- Accounts payable of $120,000.
- Income taxes payable of $30,000.
The company also has these other assets:
- Cash of $10,000.
- Inventory of $100,000 but with a net realizable value of $60,000.
- Equipment of $90,000 but with a net realizable value of $50,000.
How much will each of the company’s liabilities be paid at liquidation?
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A company preparing for a Chapter 7 liquidation has the following liabilities:• Note payable A of $90,000 secured by land having a book value of $50,000 and a fair value of $70,000.• Note payable B of $120,000 secured by a building having a $60,000 book value and a $40,000 fair value.• Note payable C of $60,000, unsecured.• Administrative expenses payable of $20,000.• Accounts payable of $120,000.• Income taxes payable of $30,000.The company also has these other assets:• Cash of $10,000.• Inventory of $100,000 but with a net realizable value of $60,000.• Equipment of $90,000 but with a net realizable value of $50,000.How much will each of the company’s liabilities be paid at liquidation?
A company preparing for a Chapter 7 liquidation has the following liabilities:
• Note payable A of $108,000 secured by land having a book value of $59,000 and
a fair value of $79,000.
•
Note payable B of $138,000 secured by a building having a $69,000 book value
and a $49,000 fair value.
• Note payable C of $69,000, unsecured.
• Administrative expenses payable of $29,000.
• Accounts payable of $129,000.
Income taxes payable of $39,000.
The company also has these other assets:
Cash of $19,000.
Inventory of $118,000 but with fair value of $69,000.
Equipment of $108,000 but with fair value of $59,000.
How much will each of the company's liabilities be paid at liquidation?
A company preparing for a Chapter 7 liquidation has listed the following liabilities:
Note payable A of $110,000 secured by land having a book value of $60,000 and a fair value of $80,000
Note payable B of $140,000 secured by a building having a $70,000 book value and a $50,000 fair value.
Note payable C of $70,000, unsecured.
Administrative expenses payable of $30,000.
Accounts payable of $130,000.
Income taxes payable of $40,000.
The company also has these other assets:
Cash of $16,800.
Inventory of $120,000 but with a net realizable value of $70,000.
Equipment of $110,000 but with a net realizable value of $60,000
Based on this information, how much will each of the company's liabilities be paid at liquidation?
Payment on note payable A
Payment on note payable B
Payment on note payable C
Payment on administrative expenses
Payment on accounts payable
Payment on income taxes payable
Amount
$ 89,154
$ 77,463
$ 21,360
$ 9,154
$ 39,669 x
$ 40,000
Chapter 13 Solutions
ACNT 2333 PRINT UPGRADE
Ch. 13 - What does the term insolvent mean?Ch. 13 - Why should a company monitor the reporting of...Ch. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - What federal legislation governs most bankruptcy...Ch. 13 - What are the primary objectives of a bankruptcy...Ch. 13 - A bankruptcy case can begin with either a...Ch. 13 - A bankruptcy court enters an order for relief. How...
Ch. 13 - What is the difference between fully secured...Ch. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - What is the difference between a Chapter 7...Ch. 13 - What is the purpose of a statement of financial...Ch. 13 - In a bankruptcy liquidation, what actions does the...Ch. 13 - A trustee for a company that is being liquidated...Ch. 13 - If a company is not required to follow U.S. GAAP,...Ch. 13 - Prob. 19QCh. 13 - In determining whether a company needs to use the...Ch. 13 - In following the liquidation basis of accounting,...Ch. 13 - How does a company report its assets when the...Ch. 13 - What does the term debtor in possession mean?Ch. 13 - Who can develop reorganization plans in a Chapter...Ch. 13 - Prob. 25QCh. 13 - Prob. 26QCh. 13 - In a bankruptcy proceeding, what is a cram down?Ch. 13 - Prob. 28QCh. 13 - During reorganization, how should a companys...Ch. 13 - Prob. 30QCh. 13 - Prob. 31QCh. 13 - Under what conditions does a company that is...Ch. 13 - Prob. 33QCh. 13 - Prob. 34QCh. 13 - What are the objectives of the bankruptcy laws in...Ch. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - In a bankruptcy, which of the following statements...Ch. 13 - Prob. 5PCh. 13 - An involuntary bankruptcy petition must be filed...Ch. 13 - An order for relief creates an automatic stay that...Ch. 13 - Prob. 8PCh. 13 - Which of the following is the minimum limitation...Ch. 13 - On a statement of financial affairs, how are...Ch. 13 - What is a debtor in possession? a. The holder of a...Ch. 13 - How are anticipated administrative expenses...Ch. 13 - Prob. 13PCh. 13 - Which of the following is not an expected function...Ch. 13 - What is an inherent limitation of the statement of...Ch. 13 - What is a cram down? a. An agreement about the...Ch. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - How are assets to be reported when the liquidation...Ch. 13 - The New England Company has a debt to a bank of...Ch. 13 - On a balance sheet prepared for a company during...Ch. 13 - Which of the following is not a reorganization...Ch. 13 - What accounting is made for professional fees...Ch. 13 - Which of the following is necessary for a company...Ch. 13 - Prob. 26PCh. 13 - For a company emerging from bankruptcy, how are...Ch. 13 - The Walston Company is to be liquidated and has...Ch. 13 - Prob. 29PCh. 13 - Prob. 30PCh. 13 - Prob. 31PCh. 13 - Mondesto Company has the following debts:...Ch. 13 - A statement of financial affairs created for an...Ch. 13 - A company preparing for a Chapter 7 liquidation...Ch. 13 - Olds Company declares Chapter 7 bankruptcy. The...Ch. 13 - A company going through a Chapter 7 bankruptcy has...Ch. 13 - Pumpkin Company is going through bankruptcy...Ch. 13 - Prob. 38PCh. 13 - Prob. 39PCh. 13 - Kansas City Corporation holds three assets when it...Ch. 13 - Prob. 41PCh. 13 - Prob. 42PCh. 13 - Prob. 43PCh. 13 - Prob. 44PCh. 13 - The following balance sheet has been prepared by...Ch. 13 - Prob. 46PCh. 13 - Prob. 47PCh. 13 - The following balance sheet has been produced for...Ch. 13 - Prob. 49PCh. 13 - Prob. 50PCh. 13 - Prob. 51PCh. 13 - Prob. 52PCh. 13 - Holmes Corporation has filed a voluntary petition...
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