Question: When the Beacon Computer Company filed for bankruptcy under Chapter 7 of the U.S. bankruptcy code, it had the following balance sheet information: Assuming there

When the Beacon Computer Company filed for bankruptcy under Chapter 7 of the U.S. bankruptcy code, it had the following balance sheet information:

Assuming there are no legal fees associated with the bankruptcy, as a trustee, what distribution of liquidating value do you propose?

Liquidating Value Claims Trade credit Secured mortgage notes Senior debentures Junior debentures $4,700 7,400 12,000 19,000 -11,700 Total assets $31,400 Equity

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