Your new canine taxi business has gone bankrupt. You have a number of assets and liabilities. You
Question:
Your new canine taxi business has gone bankrupt. You have a number of assets and liabilities. You bought your two taxis under conditional sales contracts and you are still paying off ClassiTaxi Inc., the dealership from which you purchased them. In addition, you have been unable pay your utilities bills at the office premises for the last two months and you are behind in the rent. Two of your drivers have not been paid for the last month. You also just bought a commercial garage with secured financing from the bank.
Rank your creditors and describe what class they fall into.
Also, identify what type of security that the bank would be most likely to have taken on the garage purchase.
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson