Kline Corporation incurred major losses in 2014 and entered into voluntary Chapter 7 bankruptcy in the early part of 2015.By July 1,all assets were converted into cash,the secured creditors were paid,and $122,700 in cash was left to pay the remaining claims as follows:
petition and the date an interim trustee is appointed
earned within 90 days of filing bankruptcy petition)
Required:
Classify the claims by their Chapter 7 priority ranking,and analyze which amounts will be paid and which amounts will be written off.

Question

Kline Corporation incurred major losses in 2014 and entered into voluntary Chapter 7 bankruptcy in the early part of 2015.By July 1,all assets were converted into cash,the secured creditors were paid,and $122,700 in cash was left to pay the remaining claims as follows:
  petition and the date an interim trustee is appointed
  earned within 90 days of filing bankruptcy petition)
  Required:
Classify the claims by their Chapter 7 priority ranking,and analyze which amounts will be paid and which amounts will be written off.

Quizplus · Accepted Answer

The Answer of Kline Corporation incurred major losses in 2014 and entered into voluntary Chapter 7 bankruptcy in the early part of 2015.By July 1,all assets were converted into cash,the secured creditors were paid,and $122,700 in cash was left to pay the remaining claims as follows:
  petition and the date an interim trustee is appointed
  earned within 90 days of filing bankruptcy petition)
  Required:
Classify the claims by their Chapter 7 priority ranking,and analyze which amounts will be paid and which amounts will be written off.

Kline Corporation Incurred Major Losses in 2014 and Entered into Voluntary