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On June 1, Riviera was involuntarily petitioned into bankruptcy. On June 30, a trustee in bankruptcy...

On June 1, Riviera was involuntarily petitioned into bankruptcy. On June 30, a trustee in bankruptcy was appointed and an order for relief was entered. The claims and expenses against Riviera’s estate are as follows:

Claims and Expenses

*Fees earned by bankruptcy trustee                                         $15,000

*Fees earned by attorney for bankruptcy estate                                    $10,000

*Claims by secured creditors                                                    $5,000

*Claims by Riviera’s employees for wages earned within

            180 days of filing of the bankruptcy petition               $20,000

*Claims by general unsecured creditors                                               $15,000

Assume there is $41,000 in assets available for distribution to creditors. How will the assets be allocated to the above creditors?

Subject: Business Law

Business   Accounting   
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