Palmer Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation: Of the salaries payable, $35,000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: Barbara Jones was owed $11,200, Denise Graham was owed $18,700, John Sanders was owed $12,100, and Robert Walters was owed $3,000. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $45,000.What amount would the company have expected to pay for every dollar of unsecured liability without priority?
A) $0.40.
B) $0.59.
C) $0.50.
D) $0.65.
E) $0.72.

Question

Palmer Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation:

Of the salaries payable, $35,000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: Barbara Jones was owed $11,200, Denise Graham was owed $18,700, John Sanders was owed $12,100, and Robert Walters was owed $3,000. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $45,000.What amount would the company have expected to pay for every dollar of unsecured liability without priority?
A) $0.40.
B) $0.59.
C) $0.50.
D) $0.65.
E) $0.72.

Palmer Co Had the Following Amounts for Its Assets, Liabilities, and and Stockholders