Rank in order of priority (highest to lowest) the following claims on the proceeds from the liquidation

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Rank in order of priority (highest to lowest) the following claims on the proceeds from the liquidation of a bankrupt firm:
Taxes owed to federal, state, and local governments
Preferred stockholders
Common stockholders
Expenses of administering the bankruptcy
Secured creditors
Unsecured creditors
Wages in three months before bankruptcy (up to $2,000 per employee)
Customer deposits (up to $900 each)
Expenses incurred after the bankruptcy petition is filed and before a trustee is appointed
Contributions to employee benefit plans (up to $2,000 per employee)

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....
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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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