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

The company has the followingassets:

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Book Value Fair Value $ 35,000 90,000 110,000 Current assets . Land. Buildings and equipment .. ..100,000 . 80,000 .100,000