Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities: Net Book Realizable Value ValueCurrent assets$200,000$140,000Land 70,000 100,000Building 500,000 350,000Equipment 300,000 160,000Accounts 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 the mortgage holder expect to collect from the liquidation?
A. $480,000
B. $478,000
C. $450,000
D. $474,000
E. $510,000
Answer: D
You might also like to view...
The average-cost method produces an ending inventory figure that is somewhere between the figures produced by FIFO and LIFO
Indicate whether the statement is true or false
Miriam wants to implement a sustainability program for her mid-sized paper goods production company, but she knows much of her upper management is skeptical about global warming and environmental issues. What case should she next make to convince them to adopt her plan?
a. Emphasize how sustainability improves business and shareholder approval. b. Emphasize that the company can better avoid regulatory problems if they adopt the plan. c. Offer personal financial incentives, particularly bonus packages, for those who come on board. d. Don’t waste time trying to convince management, but go to lower-level employees to make the case.
The net realizable value approach requires that the NRV of the by-product be treated as
a. a reduction of joint costs. b. be totally ignored. c. a sunk cost. d. an increase in the joint costs.
If a statute imposes criminal liability based on strict liability, then "mens rea" is not required
Indicate whether the statement is true or false