Acme Co. was a successful manufacturing company for many years. Ten years ago, the company purchased a new building for $800,000. To do so, it used $350,000 cash and borrowed the rest as first and second mortgages. Unfortunately, the recession years were difficult for the company, creating serious financial difficulties.Acme Co. later went into bankruptcy. Below is a summary of the funds realized from the sale of assets and the debt situation at the time.

The trustee in bankruptcy realized the following amounts from the sale of the business assets:

Assets:Creditor Claims:Building$300,000First mortgage (building)$200,000Storage Shed$50,000Second mortgage (building)$175,000Vintage wine$35,000Conditional sale agreement (shed)$30,000Car$50,000Chattel mortgage on car$30,000Municipal Taxes ($10,000/yr)$30,000Accounts Receivable $10,000Rent($5,000/month)$25,000Bank Accounts$5,000Trade Creditors$160,000Misc Equipment$15,000Trade Fixtures$10,000Antique Register$5,000Total Assets$480,000Total Claims$650,000

The expenses of liquidation were $1,500. The trustee's fee was $2,000.

1. Use the following headings and layout to show the order in which the trustee in bankruptcy made payments to the various types of creditors. Assume that all secured creditors had taken the necessary steps to protect their security.

Total of liquidated assets:

Less payments to secured creditors:

Total:

Less payments to preferred creditors:

Total:

Total left to pay general creditors:

Payments to general creditors:

Total:

1. Determine how many cents on the dollar the general creditors should receive.