Mandich Co

question 54

Multiple Choice

Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation: Of the salaries payable, $30,000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: John Webb was owed $10,600, Samantha Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $40,000. What was the total amount of unsecured liabilities with priority?

• A) $130,000.
• B) $155,000.
• C) $166,550.
• D) $170,000.
• E) $200,000. Pension $10,000 + Salaries $36,550 (= $10,600 + $11,725 + $11,725 + $2,500) + Taxes $80,000 + Liquidation expenses $40,000 = $166,550.

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Definitions:

Granular Body

Cytoplasmic structures composed of granules, found in various types of cells, often associated with the storage and secretion of substances.

RNA

Ribonucleic acid, a nucleic acid present in all living cells that acts as a messenger carrying instructions from DNA for controlling the synthesis of proteins.

Lipid Bilayers

A fundamental structure of cell membranes, consisting of two layers of lipid molecules with hydrophilic heads and hydrophobic tails.

Self-sealing

Characterizes materials or devices capable of automatically closing or repairing themselves after being punctured or cut.