Grundy Grocery Inc. is closing down as the owners are retiring. It has been very profitable and has more than enough money to pay all claims. It owes money to creditors as follows:

Unpaid dividends on preferred shares of $36,000

Unpaid dividends on common shares of $40,000

Unpaid balance of $1.25 million on a mortgage

Unpaid amount of $3500 on an electrical bill.

Rank these debts in order of priority from 1 (first) to 4 (last).You will get .5 mark for each one that is in the correct order.

Question 57 options:

1

2

3

4

Unpaid balance of $1.25 million on a mortgage1

2

3

4

Unpaid dividends on preferred shares of $36,0001

2

3

4

Unpaid amount of $3500 on an electrical bill1

2

3

4

Unpaid dividends on common shares of $40,000