Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation: Book Value Net Realizable ValueCash$10,000  $10,000 Accounts receivable 100,000   60,000 Inventory 350,000   350,000 Land 110,000   75,000 Building and equipment 700,000   300,000 Accounts payable 100,000     Salaries payable 70,000     Notes payable (secured by inventory) 300,000     Employees' claims for contributions to pension plans 10,000     Taxes payable 80,000     Liability for accrued expenses 25,000     Bonds payable 500,000     Common stock 200,000     Additional paid-in capital 100,000     Retained earnings

(deficit) (115,000)    ??Of the salaries payable, $30,000 was owed to an officer of the company.  The remaining amount was owed to salaried employees who had not been paid within the previous 80 days:  John Webb was owed $10,600, Samantha Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500.  The maximum owed for any one employee's claims for contributions to benefit plans was $800.  Estimated expense for administering the liquidation amounted to $40,000.?On a statement of financial affairs, what amount would have been shown as assets available to pay liabilities with priority and unsecured creditors?

A. $495,000.
B. $795,000.
C. $445,000.
D. $660,000.
E. $390,000.


Answer: A

Business

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