Question

Rank in order of priority (highest to lowest) the following claims on the proceeds from the...

Rank in order of priority (highest to lowest) the following claims on the proceeds from the liquidation of a bankrupt firm:
Taxes owed to federal, state, and local governments
Preferred stockholders
Common stockholders
Expenses of administering the bankruptcy
Secured creditors
Unsecured creditors
Wages in three months before bankruptcy (up to $2,000 per employee)
Customer deposits (up to $900 each)
Expenses incurred after the bankruptcy petition is filed and before a trustee is appointed
Contributions to employee benefit plans (up to $2,000 per employee)

Homework Answers

Answer #1
Answer is as under :
Claims on the proceeds from the liquidation of a bankrupt firm in order of there prioritiy :
1) Expenses incurred after the bankruptcy petition is filed and before a trustee is appointed
2) Expenses of administering the bankruptcy
3) Secured creditors
4) Unsecured creditors
5)Wages in three months before bankruptcy (up to $2,000 per employee)
6)Contributions to employee benefit plans (up to $2,000 per employee)
7)Customer deposits (up to $900 each)
8) Preferred stockholders
9)Common stockholders
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