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 :)