Deere, Inc. will be liquidated under Chapter 7 of the Bankruptcy Act. Its current balance sheet is shown below. Fixed assets will be sold for $4,000,000 and current assets will be sold for $2,000,000. All fixed assets are pledged as collateral for all mortgage bonds. Subordinated debentures are subordinate only to notes payable. Trustee costs are $750,000.

	Before			Before
	Default		Balance Sheet	Default
Current Assets	5,000,000		Accounts payable	1,000,000
Net fixed assets	7,000,000		Accrued taxes	50,000
			Accrued wages	85,000
			Notes payable	2,000,000
			Total current liabilities	3,135,000
			First-mortgage bonds	2,000,000
			Second-mortgage bonds	3,000,000
			Subordinated debentures	5,000,000
			Common stock	300,000
			Retained earnings	(1,435,000)
Total assets	12,000,000		Total claims	12,000,000

a. How much will SHs receive?

b. How much will mortgage bondholders receive?

c. How much will priority creditors receive?

d. Identify the remaining general creditors. How much will each receive before subordination adjustment?

e. How much will each general creditor receive after subordination adjustment?