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Assignment About Liquidation Value

Copper Homes is being liquidated with total creditors owed P2,000,000, liquidation costs of P500,000, and asset sale proceeds of P3,000,000. AG Partnership is also being liquidated with cash of P50,000, a building valued at P800,000 but can be sold for P600,000, and total creditors of P500,000.

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Niezel Miranda
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345 views

Assignment About Liquidation Value

Copper Homes is being liquidated with total creditors owed P2,000,000, liquidation costs of P500,000, and asset sale proceeds of P3,000,000. AG Partnership is also being liquidated with cash of P50,000, a building valued at P800,000 but can be sold for P600,000, and total creditors of P500,000.

Uploaded by

Niezel Miranda
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ASSIGNMENT: LIQUIDATION VALUE

PROBLEMS:
1. Copper Homes is to be liquidated. All creditors, both secured and unsecured, are
owed P2,000,000. Administrative costs of liquidation and wages payments are
expected to be P500,000. A sale of assets is expected to bring P3,000,000 after
all costs and taxes. What is the liquidation value of Copper Homes?
Answer:

2. The AG Partnership is not being well, and the partners have decided to liquidate
the business. The partners share income and loss in a ratio of 2:1 AG
Partnership reported cash of P50,000 and a building valued at P800,000. They
owed P500,000 to various creditors. Upon checking with realtors, they can sell
the building at P600,000 based on current prices. How much is the liquidation
value of AG Partnership?
Answer:

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