Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,500 in free cash. The following debts, totaling $49,550, remain: Government claims to unpaid taxes $ 8,300 Salary during last month owed to Mr. Key (not an officer) 20,125 Administrative expenses 4,750 Salary during last month owed to Ms. Rankin (not an officer) 5,960 Unsecured accounts payable 8,850 Required: Indicate how much money will be paid to the creditor associated with each debt.
Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,500 in free cash. The following debts, totaling $49,550, remain: Government claims to unpaid taxes $ 8,300 Salary during last month owed to Mr. Key (not an officer) 20,125 Administrative expenses 4,750 Salary during last month owed to Ms. Rankin (not an officer) 5,960 Unsecured accounts payable 8,850 Required: Indicate how much money will be paid to the creditor associated with each debt.
Chapter23: Corporate Restructuring
Section: Chapter Questions
Problem 6P
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Question
Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,500 in free cash. The following debts, totaling $49,550, remain:
Government claims to unpaid taxes | $ 8,300 |
---|---|
Salary during last month owed to Mr. Key (not an officer) | 20,125 |
Administrative expenses | 4,750 |
Salary during last month owed to Ms. Rankin (not an officer) | 5,960 |
Unsecured accounts payable | 8,850 |
Required:
Indicate how much money will be paid to the creditor associated with each debt.
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