Pasten Corporation Is Liquidating Under Chapter 7 of the Bankruptcy

question 32

Essay

Pasten Corporation is liquidating under Chapter 7 of the Bankruptcy Act.The accounts of Pasten at the time of filing are summarized as follows:
The land and building are pledged as security for the mortgage payable as well as any accrued interest on the mortgage.Wages and salaries were earned within 90 days of filing the bankruptcy petition and do not exceed $10,000 per employee.Liquidation expenses are expected to be $35,000.
Required:
1.Prepare a schedule showing the priority rankings of the creditors and the expected payouts.
2.Yuomi Corporation was a supplier to Pasten Corporation and at the time of Pasten's bankruptcy filing,Yuomi's account receivable from Pasten was $500,000.On the basis of the estimates,how much can Yuomi expect to receive?

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Definitions:

Upper Limb Length

The measurement from the top of the shoulder to the tip of the fingers, reflecting the dimensions of the arm and hand.

Body Height

The length of a human body from the bottom of the feet to the top of the head when standing upright.

Ratio

A ratio is a mathematical expression that compares two or more numbers, showing how much larger one quantity is than another.

Coefficient of Determination

This statistic measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s) in a regression model, often represented as R².