Liquidation

worker; and there were no unfunded pension plan liabilities.

aAll fixed assets are pledged as collateral to the mortgage bonds.

${?}^b$ Subordinated to notes payable only.

a$.$ How much will McDaniel's shareholders receive from the liquidation? Round your answer to the nearest dollar. If no entry is required, enter $"0".$

b$.$ How much will the mortgage bondholders receive? Round your answer to the nearest dollar.

$

c$.$ How much will the other priority claimants receive from the liquidation? Do not round intermediate calculations. Round your answers to the nearest dollar.

Claimant

Trustee's expenses

Workers' wages due

Governments' taxes due

Total

d$.$ How much will the remaining general creditors receive from the distribution before subordination adjustment? Do not round intermediate calculations. Round your answers to the nearest dollar

Account

Accounts payable

Notes payable

Second mortgage bonds

Debentures

Subordinated debentures

Total

Amount Received

$

$

$

$

$

$

$

What is the effect of adjusting for subordination? Do not round intermediate calculations. Round your answers to the nearest dollar. If no entry is required, enter $"0".$ Notes:

aAll fixed assets are pledged as collateral to the mortgage bonds.

bSubordinated to notes payable only.

How much will McDaniel's shareholders receive from the liquidation? Round your answer to the nearest dollar. If no entry is required, enter $"0".$

$

How much will the mortgage bondholders receive? Round your answer to the nearest dollar.

$

How much will the other priority claimants receive from the liquidation? Do not round intermediate calculations. Round your answers to the nearest dollar.

Claimant Amount

Trustee's expenses $

Workers' wages due $

Governments' taxes due $

Total $

How much will the remaining general creditors receive from the distribution before subordination adjustment? Do not round intermediate calculations. Round your answers to the nearest dollar.

Account Amount Received

Accounts payable $

Notes payable $

Second mortgage bonds $

Debentures $

Subordinated debentures $

Total $

What is the effect of adjusting for subordination? Do not round intermediate calculations. Round your answers to the nearest dollar. If no entry is required, enter $"0".$

Account Amount Received after subordination adjustment

Notes payable $

Subordinated debentures $