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A company has $36,000 in cash to be paid out in a bankruptcy liquidation. The company owes $20,000 for administrative expenses, $20,000 for claims for
A company has $36,000 in cash to be paid out in a bankruptcy liquidation. The company owes $20,000 for administrative expenses, $20,000 for claims for return of deposits, and $20,000 for government claims for unpaid taxes. How will the $36,000 be distributed? Multiple choice question. $20,000 is paid on the administrative expenses and $16,000 on the claims for return of deposits. $12,000 is paid on each of the three claim categories. $20,000 is paid on the government claims for unpaid taxes and $16,000 on the claims for return of deposits
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