Question

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)

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