PLEASE DO NOT RE-ANSWER QUESTION I NEED ASSISTANCE ON HOW SOLUTION WAS DETERMINED

WHERE DOES $12,475 COME FROM IN 2ND PRIORITY PAYMENT??

* tne holders of the notes payable collect following liquidation? 27. Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,200 in free cash. The following debts, totaling S43,050, remain: Government claims to unpaid taxes $ 7,000 Salary during last month owed to Mr. Key (not an officer). 18,825 Administrative expenses. 3,450 Salary during last month owed to Ms. Rankin (not an officer) 6,225 Unsecured accounts payable. 7,550 Indicate how much money will be paid to the creditor associated with each debt. Money that will be paid to the creditor associated with each debt: Particulars Amount Administrative Expenses $3,450 Salary during the last month owed to Mr. Key & MS Rankin $18,700 Government claims to unpaid taxes $4,050 Explanation: First Priority: Administrative Expense = $3,450 Second Priority: Wages - $6,225 for Rankin & $12,475 with a maximum amount = $18,700 Total priority Claims = $22,150 Now, all money will be given for Government Claims for unpaid taxes - $4,050 Total of Free assets = $26,200