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A bankrupt was operating a restaurant with 5 employees. After assessing the profitability of the...

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Accounting

A bankrupt was operating a restaurant with 5 employees. After assessing the profitability of the business the trustee decided to immediately shut it down and advised the employees about the FEG scheme. As a result of employees lodging claims under the FEG, the bankruptcy trustee received an amount of $30,000. The Trustee has also received $1,500 from the Department of Employment as reimbursement for his costs of verifying employee entitlements under the scheme. No other realisations were made in the estate.

What would be the Realisation Charge to be paid in the above circumstances?

The Australian Taxation Office (ATO) a major creditor has agreed to provide a bankruptcy trustee with an indemnity of up to $25,000 for investigation into the debtors affairs. As at the end of the charge period the trustee had called up $15,000 against the ATO indemnity to pay for legal costs of $10,000 and his own costs of $5,000. The trustee has also been successful in realising a $100,000 preferential payment in the estate as a result of those investigations and has returned the $15,000 paid by the ATO. What would be the Realisation Charge to be paid in the above circumstances?

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