Chopin Inc, a Music Publishing Company, Is Bankrupt

Chopin Inc, a music publishing company, is bankrupt. It has four creditors. One of the creditors, Frederic Ltd, is owed $200 000, and holds security over Chopin's accounts receivable. None of the other claims is secured. The municipal government is owed $100 000 in unpaid taxes. Mazurka Inc is owed $60 000 and Polonaise Inc is owed $40 000. Chopin has assets worth a total of $160 000. Half of that amount consists of its account receivables. The remainder consists of various assets that have been sold to produce a fund of money. Which of the following statements is TRUE?

A) Mazurka will receive $40 000.
B) The municipality will receive $80 000.
C) Frederic is entitled to receive a total of $80 000.
D) Frederic is entitled to receive a total of $160 000.
E) Polonaise will receive $20 000.