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Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,700 in free cash. The following
Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,700 in free cash. The following debts, totaling $40,550, remain: Government claims to unpaid taxes $ 6,500 Salary during last month owed to Mr. Key (not an officer) 18,325 Administrative expenses 2,950 Salary during last month owed to Ms. Rankin (not an officer) 5,725 Unsecured accounts payable 7,050 Indicate
how much money will be paid to the creditor associated with each debt.
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