Pontrain Imports will be liquidated.Its current balance sheet is shown below.Current assets are sold for $2,100,000 and fixed assets are sold for $5,000,000.All fixed assets are pledged as collateral for all mortgage bonds.Subordinated debentures are subordinate only to notes payable.Trustee costs are $500,000.

Sale of current assets2,100,000Sale of fixed assets5,000,000Trustee costs500,000

BeforeBeforeDefaultBalance SheetDefaultCurrent Assets3,000,000Accounts payable465,000Net fixed assets7,600,000Accrued taxes80,000Accrued wages95,000Notes payable60,000Total current liabilities700,000First-mortgage bonds2,000,000Second-mortgage bonds3,500,000Subordinated debentures4,500,000Common stock200,000Retained earnings(300,000)Total assets10,600,000Total claims10,600,000

a. How much will SHs receive?

b. How much will mortgage bondholders receive?

c. How much will priority creditors receive?

d.Identify the remaining general creditors.How much will each receive before subordination adjustment and after adjustment?