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
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Rank the following claims of an organization filing Chapter 7 bankruptcy from 1 to 4 based...
Rank the following claims of an organization filing Chapter 7 bankruptcy from 1 to 4 based on the following classifications. Each classification may be used more than once. 1. Secured Claims 2. Unsecured Priority Claims 3. Unsecured Nonpriority Claims _____A. Claims for wages that are less than $11,725 per individual, earned within 90 days of filing petition for bankruptcy. _____B. Legal fees incurred after petitioning the court for Chapter 7. _____C. Claim by the accounting firm for the audit fee...
Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before...
Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation: Book Value Net Realizable Value Cash $ 10,000 $ 10,000 Accounts receivable 100,000 60,000 Inventory 350,000 350,000 Land 110,000 75,000 Building and equipment 700,000 300,000 Accounts payable 100,000 Salaries payable 70,000 Notes payable (secured by inventory) 300,000 Employees’ claims for contributions to pension plans 10,000 Taxes payable 80,000 Liability for accrued expenses 25,000 Bonds payable 500,000 Common...
1. According to M&M Proposition I with taxes, Select one: a. the optimal capital structure is...
1. According to M&M Proposition I with taxes, Select one: a. the optimal capital structure is 100% debt. b. the optimal capital structure is 50% debt. c. the optimal capital structure is 25% debt. d. the optimal capital structure is 0% debt. e. capital structure decisions are irrelevant. 2. In a normal liquidation situation, ___________ are lower than preferred stockholders on the priority list of claims on liquidation proceeds. Select one: a. contributions to employee benefit plans b. consumer claims...
What would be the priority of the claims as to the distribution of assets in a...
What would be the priority of the claims as to the distribution of assets in a liquidation under Chapter 7 of the Bankruptcy Act? 1 is the highest claim, 5 is the lowest. (1) Trustees' costs to administer and operate the firm. (2) Common stockholders. (3) General, or unsecured, creditors. (4) Secured creditors, who have a claim to the proceeds from the sale of specific property pledged to secure a loan. (5) Taxes due to federal and state governments. a....
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...