Lesher Corportion lost their primary contact and entered into involuntary Chapter 7 bankruptcy in the early partbof 2014. By July 1, all assets were converted into cash, the secured creditors were paid and $124,500 in cash was left to pay the remaining claims as follows: Classify the claims by their Chapter 7 priority tanking and analyze which amount will be paid and which amount will be wriiten off

CCP 472 Test Bank Chapter 18 s) Lesher Corporation lost their primary contract and entered into voluntary Chapter 7 bankruptcy in the early part of 2014. By July 1, all assets were converted into cash, the secured creditors were paid, and $124,500 in cash was left to pay the remaining claims as follows: Accounts payable Claims incurred between the date of filing an involuntary bankruptcy petition and the date an interim trustee is appointed Payroll taxes withheld $ 50,000 8,000 14,000 Wages payable (all under $10,000 per employee; earned within 90 days of filing bankruptcy petition) Unsecured note payable Accrued interest on the note payable Administrative expenses of the trustee Total 56,000 37,500 2,000 22.000 Required: Classify the claims by their Chapter 7 priority ranking, and analyze which amounts will be paid and which amounts will be written off