Book 1 Problem Walk-Through Problem 24-03 Liquidation At the time it defaulted on its interest payments and nied for bankruptcy, the McDaniel Mining Company had the following 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 assets, which were pledged as collateral to the mortgage bondholders, brought in $410,000, while the current assets were sold for another $300,000. Thus, the total proceeds from the liquidation sale were $710,000. The trustee's costs amounted to $25,000; no single worker was due more than the maximum allowable wages per worker, and there were ne funded pension plan abilities Current assets $400 Account payable $ 50 Net feed assets 600 Acerved taxes Accrued wages Notes payable Total current abilities $1900 First-mortgage bonds Second-mortgage bonds Dentures Subordinated debentures Common stock Rated earnings Todas Notes Alfwed assets are pledged as collateral to the mortgage bonds. **subordinated to notes payable only How much w McDanie's shareholders receive from the daton Round your answer to the nearest de **Subordinated to notes payable only .. How much will McDaniel's shareholders receive from the liquidation? Round your answer to the nearest dollar b. How much will the mortgage bondholders receive Round your answer to the nearest dollar c. How much will other priority claimants receive from the liquidation Round your answers to the nearest dollar. Do not round intermediate calculations Claimant Trustee's expenses Workers' wages de Governments taxes due d. How much will the remaining general creditors receive from the distribution before subordination aument? Round your answers to the nearest dollar. Do not round Intermediate calculations Account Amount Received Accounts payable Notes payable Second mortgage bonds Debetures Subordinated debentures What is the effect of adjusting for subordination Round your answers to the nearest dollar. Do not round Intermediate calculations Amount Received after subordination adjustment Notes payable Subordinated debentures