At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the 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 asset, which were pledged as collateral to the mortgage bondholders, brought in $400,000, while the current asset were sold for another $200,000. Thus, the total proceeds from the liquidation sale were $600,000. The 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.

B. How much will the first mortgage bondholders receive from collateralized assets? Will they receive their full claim? if not, how much is their remaining claim?

C. How much will the second second mortgage bondholders receive from collateralized assets ? Will they receive their full claim? if not, how much is their remaining claim?

D. who are the other priority claimants(in addition to the mortgage bondholders)?how much will they receive from from the liquidation?

E. who are the remaining general creditors? how much will each receive from the distribution before subordination adjustment? how much will each receive after subordination? How much in total will the second mortgage holders receive (include the amount from collateral ?

Current assets $ 400 Accounts payable Net fixed assets 6 00 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 Total claims . All fixed assets are pledged as collateral to the mortgage bonds. Subordinated to notes payable only 300 200 200 100 50 (150) $1,000