Detailed Answer
Answer (A) is correct. After secured creditors receive the proceeds of the sale of specific collateral, the other assets are distributed according to the following scheme: (1) administrative expenses, (2) claims of gap creditors, (3) wages of no more than $12,475, (4) unpaid contributions to employee benefit plans, (5) customer deposits, (6) taxes, (7) certain unfunded pension plan liabilities, (8) claims of general or unsecured
creditors, (9) claims of preferred shareholders, and (10) claims of common shareholders.
