Question
Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,600 in free cash. The following
Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,600 in free cash. The following debts, totaling $50,050, remain:
Government claims to unpaid taxes $8,400 Salary during last month owed to Mr. Key (not an officer) 20,225 Administrative expenses 4,850 Salary during last month owed to Ms. Rankin (not an officer) 7,625Unsecured accounts payable 8,950
Indicate how much money will be paid to the creditors associated with each debt.
1)Government claims to unpaid taxes
2)Administrative expenses
3)Salary during last month owed to Ms. Rankin (not an officer)
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