In a Bankruptcy, There Was $150,000 Left After the Secured

question 58

Multiple Choice

In a bankruptcy, there was $150,000 left after the secured creditors were paid. The landlord was owed $40,000 for 4 months of unpaid rent, trustee's and lawyer's fees were $30,000, 50 employees were each owed $5,000 in unpaid wages, and there was 2 years of unpaid municipal taxes owing totaling $20,000. How much money will the landlord get?

• A)$40,000
• B)$30,000
• C)$20,000
• D)$10,000
• E)$0

---

Definitions:

General Ledger

The primary ledger, when used in conjunction with subsidiary ledgers, that contains all of the balance sheet and income statement accounts.

Direct Materials

Raw materials that can be directly traced to the production of a specific product or service.

Work in Process

The total value of materials and labor for products that are partially completed but not yet ready for sale.

Materials

Raw inputs or basic substances used in the manufacturing or production process to create finished goods.