At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the balance sheet shown here in thousands of dollars. The court after trying unsuccessfully to reorganize the firm, decided that the only recourse was liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $400,000, while the current assets were sold for another $200,000. Thus the total proceeds from the liquidation sale were $600,000. The trustee's costs amounted to $50,000; no single worker was due more than the maximum allowable wages per worker; and there were no unfunded pension plan liabilities.

Balance Sheet (in Thousands of dollars)

Current assets400

Net fixed assets600

Total assets1000

Accounts payable50

Accrued taxes40

Accrued wages30

Notes payable180

Total Current Liabl.300

First- Mortgage bonds300

Second-Mortgage bonds200

Debentures200

Subordinated debentures100

Common stock50

Retained earnings(150)

Total Liabl. and equity1000

a) How much will McDaniel's shareholders receive from the liquidation

b) How much will the first mortgage bondholders receive from collateralized assets? Will they receive their full claim? If not, how much is their remaining claim?

c) How much will the second mortgage bondholders receive from collateralized assets? Will the receive their full claim? In not, how much is their remaining claim?

d) Who are the other priority claimants? How much will the receive from the liquidation

e) Who are the remaining general creditors? How much will each receive from the distribution before subordination adjustment? How much will each receive after subordination? How much in total will the second mortgage holders receive (include the amont feceived rom collateral)