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.

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