Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities:

The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000. How much should Quincy expect to pay on the accounts payable? A. $240,000. B. $128,000. C. $120,000. D. $96,000. E. $146,000.

Solution: Assets available for priority claims and unsecured creditors $220,000 - priority claims $100,000 = $120,000

$120,000/$300,000 unsecured = payment of 40% on unsecured dollars. 40% $240,000 A/P = $96,000

My question is how to get the $220,000 and $100,000? Thank you!