Question: The following data apply to Self Test, Inc. Liquidation: At the time it defaulted on its interest payments and filed for banruptcy, Self Test Inc.

 The following data apply to Self Test, Inc. Liquidation: At the

The following data apply to Self Test, Inc. Liquidation: At the time it defaulted on its interest payments and filed for banruptcy, Self Test Inc. had the following balance sheet in millions 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 $750 million, while the current assets were sold for another $400 million. Thus, the total proceeds from the liquidation sale were $1.150 million The trustee's costs amounted to $1 million, no single worker was due more than $2,000 in wages, and there were no unfunded pension plan liabilities. Current assets $ 800 Accounts payable $ 100 Accrued taxes 90 Accrued wages Notes payable 300 Total current liabilities $ 550 Net fixed assets 1,100 First-mortgage bonds (a) 700 Second-mortgage bonds (a) Debentures 500 Subordinated debentures (b) Common stock 100 Retained Earnings _(550) Total assets $1.900 Total claims $1,900 400 200 Notes: (a) All fixed assets are pledged as collateral to the mortgage bonds (b) Subordinated to notes payable Refer to the data for Self Test, Inc.'s liquidatation What percentage of the original claim was received by each of the various claim holders

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