Creditors of Jones Corporation are considering petitioning the courts to force the company into Chapter 7 bankruptcy. The following information has been determined. Administrative expenses in connection with the liquidation are estimated to be $22,000. Indicate the amount of money that each class of creditors can anticipate receiving.
| Book Value | Net Realizable Value |
Cash | $ 6,000 | $ 6,000 |
Accounts receivable | 32,000 | 18,000 |
Inventory | 45,000 | 31,000 |
Supplies | 3,000 | -0- |
Investments | $ 2,000 | $ 8,000 |
Land | 60,000 | 72,000 |
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Buildings | 90,000 | 68,000 |
Equipment | 50,000 | 35,000 |
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|
|
Notes payable (secured by land) | 65,000 |
|
Notes payable (secured by buildings) | 78,000 |
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Bonds payable (secured by equipment) | 115,000 |
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|
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Accounts payable | 70,000 |
|
Salaries payable (two weeks' salary for three employees) | 6,000 |
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| |
Taxes payable | 10,000 |
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