TQ 6 Question 31.3 The A&Z Real Estate Company is to be liquidated. The book value of its assets is $52 billion. Bonds with a face value of $28 billion are secured by a mortgage on the company's Toronto and New York buildings. A&Z has debentures outstanding in the amount of $35 billion; shareholders' equity has a book value of $9 billion; $4.4 billion is used to cover admin costs and other priority claims (including unpaid wages, pension benefits, legal fees and taxes). The company has a liquidating value of $30 billion. Of this amount, $14 billion represents the proceeds from the sale of the Toronto and New York buildings. As the trustee in bankruptcy, following absolute priority rules, what is your proposed distribution? What effect would it have if the debentures were subordinate to the mortgage claim