LD Inc Declared Bankruptcy Through a Chapter 7 Filing

question 100

Multiple Choice

LD Inc. declared bankruptcy through a Chapter 7 filing. Consider the following data in millions of dollars and determine the funds available for secured creditors.
-Proceeds from the liquidation of assets = $395
-First mortgage = $100
-Administration expenses associated with the bankruptcy = $2
-Notes payable to the banks = $205
-Subordinated debentures = $350
-Taxes due to federal, state, and other governmental agencies = $12
-Wages due employees (1,000 employees) = $3

• A) $379
• B) $378
• C) $278
• D) $279

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