Hol is in bankruptcy and is being liquidated by a court-appointed trustee. The financial report that follows was prepared by the trustee just before the final cash distribution:
Assets
Cash..................... $ 200,000
Approved Claims
Mortgage payable (secured by property that was
sold for $100,000)................ $ 160,000
Accounts payable, unsecured........... 100,000
Administrative expenses payable, unsecured.... 16,000
Salaries payable, unsecured........... 4,000
Interest payable, unsecured........... 20,000
Total approved claims............. $ 300,000
The administrative expenses are for trustee fees and other costs of administering the debtor corporation’s estate.
REQUIRED
Show how the $200,000 cash will be distributed to holders of each of the claims.