P CO

Hi sir, i have watched your tutorial on this topic.

However, i have try one question and got some confusion. The question has asked to calculate using an asset-based valuation, what is the lowest value that Mick should attribute to T Co?

$000
Non-current assets 100
Receivables 40
Total Assets 140

Equity
Ordinary shares 20
Reserves 37
Bank loan 83
Total Liabilities 140

Notes:
1. Non-current assets consist of computers, fixtures and fittings and motor vehicles. It is estimated that these could be sold for $45,000
but would cost $120,000 to replace.

2. If liquidated, only 80% of receivables would be realised and closure costs would amount to $10,000.

3. It has been estimated that the ‘Angry Cats’ name could be sold for $200,000.

The answer given is :
NCA $45,000 + Receivables $32,000 + Patent name $200,000 – Closure cost $10,000
= $267,000

I would like to ask why the given answer did not remove bank loan of $83,000 ( as to calculate the asset-based valuation is Total Asset – total Liabilities)
Same goes when calculate the maximum value ( which simply ignore bank loan too)
I hope you can clarify it to me :/
Thank you so much sir for your time 🙂