Olds Company declares Chapter 7 bankruptcy. The following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $20,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable 32,000 68,000 (valued at $36,000) (valued at $64,000) 208,000 (valued at $168,000) 78,000 408,000 (valued at $336,000) 128,000 (value unknown) 188,000 28,000 186,000 258,000 308,000 The holders of note payable B want to collect at least $129,000. To achieve this goal, how much does the company have to receive in the liquidation of its equipment? Answer is complete but not entirely correct. Amount to be received $ 82,000

Olds Company declares Chapter 7 bankruptcy. The following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $20,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable 32,000 68,000 (valued at $36,000) (valued at $64,000) 208,000 (valued at $168,000) 78,000 408,000 (valued at $336,000) 128,000 (value unknown) 188,000 28,000 186,000 258,000 308,000 The holders of note payable B want to collect at least $129,000. To achieve this goal, how much does the company have to receive in the liquidation of its equipment? Answer is complete but not entirely correct. Amount to be received $ 82,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $30,000: Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 42,000 78,000 (worth $46,000) 88,000 (worth $74,000) (worth 218,000 Amount to be received $178,000) (worth 418,000 $356,000) 138,000 (worth unknown) 198,000 38,000 206,000 268,000 318,000 The holders of note payable B want to collect at least $120,600. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
Olds Company declares Chapter 7 bankruptcy. Following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $23,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable $ 35,000 71,000 (valued at $39,000) 81,000 (valued at $67,000) 211,000 (valued at $171,000) 411,000 (valued at $342,000) 131,000 (value unknown) 191,000 31,000 192,000 261,000 311,000 Taxes payable to government Note payable A Note payable B Bonds payable The holders of note payable B want to collect at least $104,400. Required: To achieve this goal, how much does the company have to receive in the liquidation of its equipment? Amount to be received
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000: The holders of note payable B want to collect at least $129,000. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
ASAP
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Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000: Cash . . . . . . . . . . . . . . . . . . . . $ 32,000Accounts receivable . . . . . . . . 68,000 (valued at $36,000)Inventory .. 78,000 (valued at $64,000)Land (secures note A) . . . . . . 208,000 (valued at $168,000)Building (secures bonds) . . . . 408,000 (valued at $336,000)Equipment . . . . . . . . . . . . . 128,000 (value unknown)Accounts payable . . . . . . . . . 188,000Taxes payable to government .. 28,000Note payable A . . . . . . . . . . .. 186,000Note payable B . . . . . . . . . . . 258,000Bonds payable . . . . . . . . . . . 308,000 The holders of note payable B want to collect at least $129,000. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?