Mandich Co

Mandich 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, $30,000 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: John Webb was owed $10,600, Samantha Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $40,000.
-What amount would the company have expected to pay for every dollar of unsecured liability without priority?

A) $.30.
B) $.40.
C) $.50.
D) $.60.
E) $.75. Assets available for priority claims and unsecured creditors $495,000 - Priority claims $165,000 = Assets available for nonpriority unsecured creditors $330,000.
$330,000/$660,000 unsecured liab. = $.50.