Problem 13-23 [LO3, LO6] Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,700 in free cash. The following debts, totaling $

Problem 13-23 [LO3, LO6]

Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,700 in free cash. The following debts, totaling $40,550, remain:

Government claims to unpaid taxes $ 6,500

Salary during last month owed to Mr. Key (not an officer) 18,325

Administrative expenses 2,950

Salary during last month owed to Ms. Rankin (not an officer) 5,725

Unsecured accounts payable 7,050

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Indicate how much money will be paid to the creditor associated with each debt. (Be sure to list liabilities in the order of priority.)

(Click to select)Government claims to unpaid taxesSalary during last month owed to Ms. RankinSalary during last month owed to Mr. KeyUnsecured accounts payableAdministrative expenses

(Click to select)Salary during last month owed to Ms. RankinGovernment claims to unpaid taxesUnsecured accounts payableAdministrative expensesSalary during last month owed to Mr. Key and Ms. Rankin

(Click to select)Salary during last month owed to Mr. KeySalary during last month owed to Ms. RankinUnsecured accounts payableGovernment claims to unpaid taxesAdministrative expenses

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