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Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,900 in free cash. The following
Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,900 in free cash. The following debts, totaling $41,550, remain: $ 6,700 Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable 18,525 3,150 5,925 7,250 Indicate how much money will be paid to the creditor associated with each debt. Types of Debts Administrative expenses Amounts 3,150 Salary during last month owed to Mr. Key and Ms. Rankin Government claims to unpaid taxes
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