Compute for the free assets before deducting liabilities

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S company was to be liquidated had the following liabilities:

Income taxes P 10 000

notes payable secured by land 100 000

accounts payable 51 050

salaries payable (P 10 950 for employee 1 and P 2 000 for employee 2 ) 12 950

administrative expense for liquidation 20 000

the company had the following assets

                              Book Values          Fair Values

Current Assets           P 100 000          P 95 000

Land                          50 000           75 000

Building                      150 000            20 000

Question 1: Compute for the free assets, before deducting liabilities with priorities.

Reference no: EM132585423

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