Keck Business Forms recently failed and will be liquidated by a court-appointed trustee who will charge $300,000 for her services. The preliquidation balance sheet follows. Assume that the trustee liquidates the assets for $4.8 million, with $2.6 million coming from the sale of current assets and $2.2 million coming from fixed assets. Also assume that the unsecured bonds are subordinate to the notes payable. Prepare a table indicating the amount to be distributed to each claimant. Do the firm’s owners receive any funds?

aRepresents wages of $4,000 or less per employee earned within 90 days of filing bankruptcy for 200 of the firm’s employees. bUnpaid employee benefits that were due in the 180-day period preceding the firm’s bankruptcy filing, which occurred simultaneously with the termination of its business.
cUnsecured customer deposits not exceeding $1,800 each.
dFirst and second mortgages on the firm’s total fixed assets.

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Keck Business Forms Balance Sheet As of December 31, 2012 Assets Liabilities and Stockholder's Equity Cash Marketable securities Accounts receivable Inventories Prepaid expenses 100,000 Accounts payable $1,200,000 1,100,000 300,000 200,000 250,000 100,000 S3,150,000 $1,500,000 1,000,000 2,000,000 S4,500,000 S 500,000 1,000,000 300,000 S1,800,000 50,000 Notes payable bank 1,100,000 Accrued wages 2,400,000 400,000 $4,050,000 Unpaid employee benefits b Unsecured customer deposits c Taxes payable Total curent assets Total curent liabilities S1,000,000 First mortgage Land Net plant Net equipment 2,100,000 Second mortgage 2.300.000 Unsecured bonds Total fixed assets $5,400,000 Total long-term debt $9.450,000 Preferred stock (5,000 shares) Total assets Common stock (10,000 shares) Retained eamings Total stockholders' equity Total liabilities and stock holders equity S9.450,000