Fabulous Fakes Corporation is being liquidated under Chapter 7 of the bankruptcy act. All assets have been converted into cash, and $374,500 cash is available to pay the following claims:

1.	Administrative expenses of preserving and liquidating the debtor corporations estate	$12,500
2.	Merchandise creditors	99,000
3.	Local government for property taxes	4,000
4.	Local bank for unsecured loan (principal is $30,000 and interest is $4,500)	34,500
5.	State government for gross receipts taxes	3,000
6.	Employees for unpaid wages during the month before filing (includes $12,275 for the company president and less than $11,725 for each of the other employees)	48,000
7.	Customers for prepaid merchandise that was not delivered	1,500
8.	Holders of the first mortgage on the companys real estate that was sold for $240,000 (includes $220,000 principal and $8,500 interest)	228,500

Assume that all the claims are allowed and that they were timely filed.

Required

Rank the claims according to priority under the bankruptcy act.