At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the following balance sheet (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 $400,000, while the current assets were sold for another $200,000. Thus, the total proceeds from the liquidation sales were $600,000. Trustee's costs amounted to $50,000; no single worker was due more than $2,000 in wages; and there were no unfunded pension plan liabilities.

Assets

Current assets$400

Net fixed assets600

Total assets$1,000

Liabilities and equity

Accounts payable $50

Accrued taxes $40

Accrued wages $30

Notes payable $180

Total current liabilities $300

First-mortgage bonds $300

Second-mortgage bonds $200

Debentures $200

Subordinated debentures $100

Common stock $50

Retained Earnings -$150 or ($150)

Total claims $1,000

*All fixed assets are pledged as collateral to the mortgage bonds

*Subordinated to notes payable only

a. How much will McDaniel's shareholders receive from the liquidation?

b. How much will the mortgage bondholders receive?

c. Who are the other priority claimants (in addition to the mortgage bondholders)? How much will they receive from the liquidation?

Please do all calculations in excel.