What would be the priority of the claims as to the distribution of assets in a liquidation under Chapter 7 of the Bankruptcy Act? 1 is the highest claim, 5is the lowest.(1) Trustees' costs to administer and operate the firm.(2) Common stockholders.(3) General, or unsecured, creditors.(4) Secured creditors, who have a claim to the proceeds from the sale of specific property pledged to secure a loan.(5) Taxes due to federal and state governments.Oa. 4, 1, 5, 3, 2Ob. 1, 5, 4, 3, 2Oc. 1, 4, 3, 5, 2Od. 5, 1, 4, 2, 3Oe. 5, 4, 1, 3, 2

In a liquidation, the concept of distribution of assets refers to the process of selling off a…

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