On March 15, 2020, Nichols Corporation, an garden implement dealer, was petitioned into involuntary bankruptcy under...

Transcribed Image Text:

On March 15, 2020, Nichols Corporation, an garden implement dealer, was petitioned into involuntary bankruptcy under the liquidation provisions of Chapter 7 of the Federal Bankruptcy Code. When the petition was filed, Nichols' creditors included: Secured Creditors: Renansant Bank- !st mortgage on store building Johnson Supply Company- PMSI in inventory Intelnext - Perfected Security interests in fixtures Amount Owed $120,000 40,000 30,000 UNSECURED CREDITORS: IRS - 2018 Federal Income Taxes Hilliard Janitorial Service for Jan & Feb 2020 Wes Dean (employee) Commission for February 2,000 City of Oxford Electric Department (Jan & Feb 2020) 750 Tractor Supply Company - Supplies purchased in 2019 2,000 All of Nichol's assets were liquidated. The building sold for $80,000, the fixtures sold for $15,000, and the inventory sold for $25,000. After paying the bankruptcy administration expenses, secured creditors (from the proceeds of their collateral), and priority general creditors, there was enough to pay each non-priority general creditor 50 cents on the dollar. How much would Tractor Supply Company be paid under Chapter 7? $0 O $1,000 $1500 25,000 900 On March 15, 2020, Nichols Corporation, an garden implement dealer, was petitioned into involuntary bankruptcy under the liquidation provisions of Chapter 7 of the Federal Bankruptcy Code. When the petition was filed, Nichols' creditors included: Secured Creditors: Renansant Bank- !st mortgage on store building Johnson Supply Company- PMSI in inventory Intelnext - Perfected Security interests in fixtures Amount Owed $120,000 40,000 30,000 UNSECURED CREDITORS: IRS - 2018 Federal Income Taxes Hilliard Janitorial Service for Jan & Feb 2020 Wes Dean (employee) Commission for February 2,000 City of Oxford Electric Department (Jan & Feb 2020) 750 Tractor Supply Company - Supplies purchased in 2019 2,000 All of Nichol's assets were liquidated. The building sold for $80,000, the fixtures sold for $15,000, and the inventory sold for $25,000. After paying the bankruptcy administration expenses, secured creditors (from the proceeds of their collateral), and priority general creditors, there was enough to pay each non-priority general creditor 50 cents on the dollar. How much would Tractor Supply Company be paid under Chapter 7? $0 O $1,000 $1500 25,000 900

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer Correct Answer is b 1000 Ex... View the full answer