A company that was to be liquidated had the following liabilities: Income Taxes$10,000 Notes Payable secured by land 100,000 Accounts Payable 44,000 Salaries Payable ($16,000 for Employee #1 and $4,000 for Employee #2) 20,000 Administrative expenses for liquidation 20,000 The company had the following assets: Book ValueFair ValueCurrent Assets$100,00095,000Land 50,00075,000Building 150,000200,000?Total liabilities with priority are calculated to be what amount?
A. $ 46,850.
B. $ 30,000.
C. $150,000.
D. $ 50,000.
E. $ 36,850.
Answer: D
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