1. How much will McDaniel's shareholders receive from the liquidation? Round your answer to the nearest dollar.

2. How much will the mortgage bondholders receive? Round your answer to the nearest dollar.

3. How much will other priority claimants receive from the liquidation? Round your answers to the nearest dollar. Do not round intermediate calculations.

Trustee's expenses

$

Workers' wages due

$

Governments' taxes due

$

Total

$

6. How much will the remaining general creditors receive from the distribution before subordination adjustment? Round your answers to the nearest dollar. Do not round intermediate calculations.

Account

Amount Received

Accounts payable

$

Notes payable

$

Second mortgage bonds

$

Debentures

$

Subordinated debentures

$

Total

$

7. What is the effect of adjusting for subordination? Round your answers to the nearest dollar. Do not round intermediate calculations.

Account	Amount Received after subordination adjustment
Notes payable	$
Subordinated debentures	$

At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the following balance sheet shown below (in thousands of dollars). The court, after trying unsuccessfully to reorganize the firm, decided that the only recourse was liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $430,000, while the current assets were sold for another $240,000. Thus, the total proceeds from the liquidation sale were $670,000. The trustee's costs amounted to $75,000; no single worker was due more than the maximum allowable wages per worker; and there were no unfunded pension plan liabilities. s 50 40 30 180 $ 300 300 200 200 100 50 150 $1,000 Current assets 400 Account payable Net fixed assets 600 Accrued taxes Accrued wages Notes payable Total current liabilities First-mortgage bonds* Second-mortgage bonds Debentures Subordinated debentures Common stock Retained earnings Total assets $1,000 laims