Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities: Book value
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Question:
Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities:
| Book value | Net realizable value |
Current assists | $ 200,000 | $ 140,000 |
Land | 70,000 | 100,000 |
Building | 50,000 | 350,000 |
Equipment | 30,000 | 160,000 |
Account payable | 240,000 |
|
Income taxes payable | 60,000 |
|
Mortgage payable | 510,000 |
|
Note payable | 80,000 |
|
The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000. How much should Quincy expect to pay on the accounts payable?
A. $240,000.
B. $128,000.
C. $120,000.
D. $96,000.
E. $146,000.
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
Posted Date: