Question

Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,300 in free cash. The following debts, totaling $43,550, remain: $ 7,100 Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable 18,925 3,550 6,325 7,650 Indicate how much money will be paid to the creditor associated with each debt.

**** This question is complete and I cannot figure out the salary during last month owed to Mr Key and Ms rakin

Answer 1

Priority Amount 1 Amount $ 26,300 $ 3,550 $ 22,750 II Details Free Cash Available Administrative Expenses Remaining Cash Unpaid Wages (maximum of $13,650 for each creditor) Mr. Key Ms. Rankin Remaining Cash Government Claims to Unpaid Taxes (Balance) $ $ 13,650 6,325 $ $ $ 19,975 2,775 2,775 III Since, No cash is available unsecured Accounts Payable is remained unpaid. Note: Please Comment down for any further clarifications.