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Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,200 in free cash. The following
Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,200 in free cash. The following debts, totaling $43,050, remain:
Government claims to unpaid taxes | $ | 7,000 |
Salary during last month owed to Mr. Key (not an officer) | 18,825 | |
Administrative expenses | 3,450 | |
Salary during last month owed to Ms. Rankin (not an officer) | 6,225 | |
Unsecured accounts payable | 7,550 | |
Indicate how much money will be paid to the creditor associated with each debt |
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