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ABC Corporation recently failed and was liquidated by a court-appointed trustee who charged $200,000 for her services. Between the time of filling of the bankruptcy

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ABC Corporation recently failed and was liquidated by a court-appointed trustee who charged $200,000 for her services. Between the time of filling of the bankruptcy petition and the entry of an Order for Relief, a total of $100,000 in unpaid bills was incurred and remain unpaid. The pre-liquidation balance sheet is shown. Cash Marketable securities Accounts receivables Inventories Prepaid expenses Total current assets $ 40,000 30,000 620,000 1, 200,000 10,000 $ 1,900,000 Lands Net plant Net equipment Total fixed assets Total assets $ 300,000 400,000 400,000 $ 1,100,000 $ 3,000,000 $ Accounts payable Notes payable Accrued wages Unsecured customer deposits Taxes payable Total current liabilities 200,000 300,000 50,000 30,000 20,000 $600,000 First mortgage Second mortgage Unsecured bonds Total long-term debt Preferred stock Common stock Paid-in capital in excess of par Retained earnings Total stockholders' equity Total liabilities and Owners Equity $ 700,000 400,000 300,000 $ 1,400,000 $ 200,000 200,000 500,000 100,000 $ 1,000,000 $ 3,000,000 Assume that the trustee liquidates the assets for $2.5 million - $1.3 million from current assets and $1.2 million from fixed assets. Prepare a table indicating the amount to be distributed to each claimant. ABC Corporation recently failed and was liquidated by a court-appointed trustee who charged $200,000 for her services. Between the time of filling of the bankruptcy petition and the entry of an Order for Relief, a total of $100,000 in unpaid bills was incurred and remain unpaid. The pre-liquidation balance sheet is shown. Cash Marketable securities Accounts receivables Inventories Prepaid expenses Total current assets $ 40,000 30,000 620,000 1, 200,000 10,000 $ 1,900,000 Lands Net plant Net equipment Total fixed assets Total assets $ 300,000 400,000 400,000 $ 1,100,000 $ 3,000,000 $ Accounts payable Notes payable Accrued wages Unsecured customer deposits Taxes payable Total current liabilities 200,000 300,000 50,000 30,000 20,000 $600,000 First mortgage Second mortgage Unsecured bonds Total long-term debt Preferred stock Common stock Paid-in capital in excess of par Retained earnings Total stockholders' equity Total liabilities and Owners Equity $ 700,000 400,000 300,000 $ 1,400,000 $ 200,000 200,000 500,000 100,000 $ 1,000,000 $ 3,000,000 Assume that the trustee liquidates the assets for $2.5 million - $1.3 million from current assets and $1.2 million from fixed assets. Prepare a table indicating the amount to be distributed to each claimant

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