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Benjamin has declared bankruptcy and his trustee is currently dividing his assets. Benjamin has only one relevant asset, a painting, which is sold for $33,000.
Benjamin has declared bankruptcy and his trustee is currently dividing his assets. Benjamin has only one relevant asset, a painting, which is sold for $33,000. Benjamin has three creditors. The first, a bank, is owed $30,000, and the bank's loan is secured by the painting. The second is his friend, who is owed $6000. The third is the trustee in bankruptcy, which is owed $5000 as a preferred creditor. Which of the following statements is most likely to be TRUE? The government gets $5000, his friend gets $1000, and the bank gets $27,000. Each creditor gets $11 000. The government gets $5000, the bank $28 000, and his friend $0. The bank gets $30 000, the government $3000, and his friend $0. The bank gets $33 000, the government and his friend get both get $0. Benjamin has declared bankruptcy and his trustee is currently dividing his assets. Benjamin has only one relevant asset, a painting, which is sold for $33,000. Benjamin has three creditors. The first, a bank, is owed $30,000, and the bank's loan is secured by the painting. The second is his friend, who is owed $6000. The third is the trustee in bankruptcy, which is owed $5000 as a preferred creditor. Which of the following statements is most likely to be TRUE? The government gets $5000, his friend gets $1000, and the bank gets $27,000. Each creditor gets $11 000. The government gets $5000, the bank $28 000, and his friend $0. The bank gets $30 000, the government $3000, and his friend $0. The bank gets $33 000, the government and his friend get both get $0
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