The following balance sheet has been produced for Litz Corporation as of August 8, 2011, the date on which the company is to begin selling assets as part of a corporate liquidation:
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The following events occur during the liquidation process:
The investments are sold for $39,000.
The inventory is sold at auction for $48,000.
The money derived from the inventory is applied against the current notes payable.
Administrative expenses of $15,000 are incurred in connection with the liquidation.
The land and buildings are sold for $315,000. The long-term notes payable are paid.
The accountant determines that $34,000 of the accounts payable are liabilities with priority.
The company's equipment is sold for $84,000.
Accounts receivable of $34,000 are collected. The remainder of the receivables is considered uncollectible.
The administrative expenses are paid.
a. Prepare a statement of realization and liquidation for the period just described.
b. What percentage of their claims should the unsecured creditors receive?