Merry Land Company, an amusement park in Atlanta, has experienced increased difficulty in paying its bills. Although the park has been marginally profitable over the years, the current outlook is not encouraging, as profits during the last two years have been negative. The park is located on reasonably valuable real estate and has an overall liquidating value of $5 million. After much discussion with creditors, management has agreed to a voluntary liquidation. A trustee, who is appointed by the various parties to liquidate the properties, will charge $200,000 for her services. The Merry Land Company owes $300,000 in back property taxes. It has a $2 million mortgage on certain amusement park equipment that can be sold for only $1 million. Creditor claims are as follows:

What amount is each party likely to receive in liquidation?

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PARTY General creditors Mortgage bonds Long-term subordinated debit BOOK VALUE CLAIM $1.750,000 2,000,000 1,000,000 5,000,000 Common stock