What Is the Absolute Priority Rule of the Following Claims

question 3

Multiple Choice

What is the absolute priority rule of the following claims once a corporation is determined to be bankrupt?

• A)administrative expenses, wages claims, government tax claims, debtholder and then equityholder claims
• B)administrative expenses, wages claims, government tax claims, equityholder and then debtholder claims
• C)wage claims, administrative expenses, debtholder claims, government tax claims and equityholder claims
• D)wage claims, administrative expenses, debtholder claims, equityholder claims and government tax claims
• E)None of the above