Current assets $ 400 Accounts payable 50 Net fixed assets 600 Accrued taxes 40 Accrued wages 30 Notes payable 180 Total current liabilities $ 300 First-mortgage bondsª Second-mortgage bonds 300 200 Debentures 200 Subordinated debentures 100 Common stock 50 Retained earnings _(150) Total assets $1,000 Total claims $1,000 Notes: *All fixed assets are pledged as collateral to the mortgage bonds. Subordinated to notes payable only.
At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the
How much will each general creditor receive from the distribution before subordination adjustment and what is the effect of adjusting for subordination? (SHOW ALL WORK).
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