1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Readme [11.4K]
3 years ago
8

Michone lost her job and ended up deep in debt after she was arrested for causing a car accident while she was drinking and driv

ing. The victim in the car accident sued Michone and was awarded $40,000 in damages. Michone declared bankruptcy before she paid the victim the amount of the judgement. A couple of years before Michone declared bankruptcy, she purchased a house with a mortgage of $500,000. At the time of her bankruptcy, the house sold for $400,000. In addition, Michone was behind in her property taxes in the amount of $8,000. The attorney’s fees for the bankruptcy were $4,000. She also owed back child support in the amount of $5,000. List Michone’s creditors and the priority of their claims. In addition, if Michone only had $10,000 for the creditors listed in this discussion forum, how much would each of the creditors receive?
Business
1 answer:
statuscvo [17]3 years ago
3 0

Answer:

Michone's creditors (listed in order of priority):

  1. bank = $500,000 mortgage (secured loan)
  2. child support = $5,000 (priority class of unsecured creditors)
  3. legal fees = $4,000 (second class of unsecured creditors)
  4. State government* = property taxes for $8,000 (eighth class of unsecured creditors, but property taxes are always collected after a property is sold either by foreclosure or by court order). Even if the new buyer didn't know anything about the delinquent property taxes, he/she is responsible for paying them after the sale is made and it cannot be avoided.
  5. car accident victim = $40,000 (tenth class of unsecured creditor)

*Generally taxes owed are a lower class of priority unsecured creditors, but taxes never disappear. In this case, the property taxes are going to be paid by whoever bought the house or the bank in case the house was foreclosed. Michone will not pay them, but someone else will.

Assuming that Michone only had $10,000 left after selling the house (both property taxes and mortgage are paid for), she will need to pay child support first. Child support and alimony payments always have the top priority.

Then with the remaining $5,000 administrative and legal fees will be paid, meaning that the attorney fees will be paid first. The car accident victim will receive only $1,000.

You might be interested in
Please help me. ...​
geniusboy [140]

Answer:

You got this, never give up!

Explanation:

Believe in yourself. : )

7 0
3 years ago
Which of the following is a source that businesses use to develop standards:
ira [324]

Answer:

Suppliers

Explanation:

Suppliers are the main factor to achieve quality standards and to develop standards which lead to competitive advantage in the market. Business use suppliers to develop standards by hiring the best suppliers who give quality input or raw material. It’s all about making sure that your supplier is meeting the required standards and making sure they company with all the relevant laws.

4 0
3 years ago
When Jack takes a class, he saves all his work for that class with the name of the course. What is most likely happening to his
mojhsa [17]

Answer:

He has lost the previous files as he has been replacing them.

Explanation:

When you save a file in your computer, you need to save it with a name that is different from the names of the other files you have in the computer. If you save file with the same name of another file, you will replace that file and will lose the information you had. So according to this, as Jack is saving all his work for the class with the name of the course, it means that he has saved everything with the same name and he has lost the previous files because everytime he saves a new file he replaces the previous one.

8 0
3 years ago
Which of the following terms refers to a promise made to lenders by a borrower?
Natali5045456 [20]

Answer:

Covenant.

Explanation:

A covenant in business context refers to a formal debt agreement between a lender and a company that specific actions will or will not be undertaken.

4 0
2 years ago
His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a
svet-max [94.6K]

Answer:

This implies that bus is an inferior good and car is a normal good.

Explanation:

Initially, Jim's income was $5000 a year.

As his income increases to $60,000 a year, he decides to buy a car instead of using the bus.  

In other words, with the increase in income, the demand for traveling by bus is declining.  

This implies that it is an inferior good.  

The demand for the car is increasing with an increase in income.  

So, the car is a normal good.  

An inferior good can be defined as a product that shows negative elasticity. This means with an increase in income its demand declines an vice versa.

A normal good can be defined as a product that shows positive income elasticity. That is, its demand increases with rise in income and vice versa.

4 0
3 years ago
Other questions:
  • Axiom International, an Australian company, wants to expand its operations to China, a country that is politically, culturally,
    12·1 answer
  • When assigning initial permissions, it is good to add more permissions than strictly necessary and then remove permissions if ap
    7·1 answer
  • When the US government becomes aware of economic changes, the discovery is most likely to influence how the nation allocates res
    15·2 answers
  • The acid-test (quick) ratio A. relates cash, short-term investments, and net receivables to current liabilities. B. is calculate
    11·1 answer
  • Which of the following statements is not true: Multiple Choice Accounts receivable are increased by billings to customers. Accou
    10·1 answer
  • Consulting firms are frequently characterized according to whether their primary skill is strategic planning or tactical analysi
    5·1 answer
  • You manage inventory as per the Economic Order Quantity (EOQ) model. However, you realize that you incorrectly specified the fix
    11·1 answer
  • If a strategic plan is failing to meet its objectives, but the company's execution is deemed sufficient, management should first
    10·1 answer
  • Provide examples of each: consumer durable goods, consumer nondurable goods, and services.
    10·1 answer
  • Jan tells Lee she will pay him to babysit her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed Grou
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!