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 must have them all in the correct order to receive marks.

Question 61 options:

Unpaid dividends on common shares of $40,0001

Unpaid amount of $3,500 on an electrical bill1

Unpaid dividends on preferred shares of $36,0001

Unpaid balance of $1.25 million on a mortgage