Edward's Excursions Inc

question 17

Essay

Edward's Excursions Inc. filed for Chapter 7 bankruptcy. It has $100,000 of assets and has the following debts outstanding:
$50,000 to Arthur secured by a boat worth $25,000.
$30,000 to Bradley secured by a truck worth $30,000.
$20,000 to Clarence unsecured.
The month before Edward's closed and filed for bankruptcy, its employees earned $10,000 for which they did not get paid. They also should have been credited with $3,000 for their pension plan. Edward's owes $4,000 in back taxes. In the process of administering the estate, the trustee paid $5,000 in attorney fees. In what order will these claims be paid?

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Definitions:

Task Force

A temporary group of people formed to solve a particular problem or carry out a specific assignment.

Functional Group

A team or department within an organization that performs a specific function or set of functions, such as marketing or finance.

Quality Control Circle

A group of workers who voluntarily meet to discuss and find solutions to workplace issues, particularly those affecting quality.

Command Group

A command group is a group in an organization with formal structures and is established to achieve specific organizational objectives.