Hol is in bankruptcy and is being liquidated by a court appointed trustee. The financial report that follows was prepared by the trustee just before the final cash distribution:
Assets
Cash……………………………………………………. $ 200,000
Approved Claims
Mortgage payable (secured by property that was
sold for $100,000)…………………………………….. $ 160,000
Accounts payable, unsecured…………………………. 100,000
Administrative expenses payable, unsecured………… 16,000
Salaries payable, unsecured…………………………… 4,000
Interest payable, unsecured…………………………… 20,000
Total approved claims………………………………… $ 300,000
The administrative expenses are for trustee fees and other costs of administering the debtor corporation’s estate.
REQUIRED
Show how the $200,000 cash will be distributed to holders of each of the claims.
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