Assets available to pay off creditors after liquidation

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Reference no: EM131524170

Apogee Widgets, Inc., has filed for Chapter 7 bankruptcy. Assets available to pay off creditors after liquidation totaled $2.1 million. Administrative costs associated with the bankruptcy proceedings amounted to $40,500; wages due to 400 employees were $1 million; unpaid expenses incurred after the bankruptcy filing but before appointment of the trustee were $20,500; property taxes past due were $195,000; and unsecured creditor claims were $1.5 million. In what order and what amount should the proceeds be distributed by the trustee?

A. $195,000 for property taxes, $40,500 for administrative expenses associated with the bankruptcy proceedings, $20,500 for unpaid expenses incurred after the filing of the bankruptcy petition but before appointment of the trustee, $800,000 wages due to employees, and $1,044,000 to unsecured creditors on a prorated basis

B. $40,500 for administrative expenses associated with the bankruptcy proceedings, $195,000 for property taxes, $20,500 for unpaid expenses incurred after the filing of the bankruptcy petition but before appointment of the trustee, $800,000 wages due to employees, and $1,044,000 to unsecured creditors on a prorated basis

C. $195,000 for property taxes, $40,500 for administrative expenses associated with the bankruptcy proceedings, $20,500 for unpaid expenses incurred after the filing of the bankruptcy petition but before appointment of the trustee, $1,000,000 wages due to employees, and $844,000 to unsecured creditors on a prorated basis

D. $40,500 for administrative expenses associated with the bankruptcy proceedings, $20,500 for unpaid expenses incurred after the filing of the bankruptcy petition but before appointment of the trustee, $195,000 for property taxes, $1,000,000 wages due to employees, and $844,000 to unsecured creditors on a prorated basis

Reference no: EM131524170

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