Complete the following practice exercises from Chapter 1 and 2 and submit them to your instructor. This
assignment will be graded as a completion only to allow you to transition into the subject matter during the
first week. The instructor will post the answers to these exercises by the end of Day 6 for you to check your
accuracy and comprehension on the subject matter. Exercises: 1-2, 1-4, 1-9, 1-12, 1-18, 2-1, 2-3, 2-19, 2-
a) Business liquidation is when/ if a business fails, the remaining assets are sold to create
money to pay off creditors and investors.
b) Brandy’s creditors will receive $1,200
c) Brandy’s investors would receive zilch.
loss of $30,000
Buesco Enterprises, gains $134,000 initially, but ends up with $12,000 after all is done.
State Bank of Texas,
Losses $64,000 but gains %25 of business interest
Leigh Realty Co.,
* As a business owner, he should be on the payroll, so he must have gotten some
percentage of the $16,000 which was left unstated.
** I did look at the answer under discussion wk 1. I don’t understand the answer.
Mr Buesco and the father in law are investors. I know the building is an asset. I know the
employees are a cost, and the bank is a creditor. But none of those titles are in the answer.