Problem: When the Beacon Computer Company filed for bankruptcy under Chapter of the U.S. Bankruptcy Code, it had the following balance sheet information:
Liquidating Value Claims
Trade Credit $3000
Secured mortgage notes $6000
Senior debentures $5000
Junior debentures $9000
Total Assets $15,500 Book Equity -$7500
Assuming there are no legal fees associated with the bankruptcy, as trustee, what distribution of liquidating value do you propose?