The Acme Corporation has been acquired by the ConglomerateCorporation. To help finance the takeover, Conglomerate is going toliquidate the overfunded portion of Acme’s pension fund. The assetslisted below are going to be liquidated. Listed are their facevalues, liquidation values today, and their anticipated liquidationvalues one year from now (their fair market values).
Asset
FaceValue
CurrentLiquidationValue
One-YearLiquidationValue
IBM stock
$19,000
$18,900
$19,500
GE bonds
7,000
6,000
6,800
Treasury securities
24,000
22,000
23,000
The Acme Corporation has been acquired by the Conglomerate Corporation. To help finance the takeover, Conglomerate is go
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