T. Swift Inc, has the following balance sheet and has declared bankruptcy:
Current Assets: $2,875,000
Fixed Assets: $2,875,000
A/P: $500,000
N/P: $700,000
Subordinated Debentures: $700,000
Common Equity: $3,850,000. The debentures are subordinated only to the notes payable. How much will each class of creditors receive if a total of $3,000,000 is received from the sale of assets?
A trustee has been appointed to oversee the bankruptcy process and will be paid $500,000.