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Southwestern Wear Inc. has the following balance sheet:

Current assets	$1,875,000		Accounts payable	$375,000
Fixed assets	1,875,000		Notes payable	750,000
			Subordinated debentures	750,000
			Total debt	$1,875,000
			Common equity	1,875,000
Total assets	$3,750,000		Total liabilities and equity	$3,750,000

The trustee's costs total $323,500, and the firm has no accruedtaxes or wages. Southwestern has no unfunded pension liabilities.The debentures are subordinated only to the notes payable. If thefirm goes bankrupt and liquidates, how much will each class ofinvestors receive if a total of $4 million is received from sale ofthe assets?

Distribution of proceeds on liquidation:

1. Proceeds from sale ofassets	$ ___
2. First mortgage, paid fromsale of assets	$ ___
3. Fees and expenses ofadministration of bankruptcy	$ ___
4. Wages due workers earnedwithin 3 months prior to filing of bankruptcy petition	$ ___
5. Taxes	$ ___
6. Unfunded pensionliabilities	$ ___
7. Available to generalcreditors	$ ___

Distribution to general creditors:

Claims of General Creditors	Claim (1)	Application of 100%Distribution (2)	After SubordinationAdjustment (3)	Percentage of Original ClaimsReceived (4)
Notes payable	$ ___	$ ___	$ ___	%___
Accounts payable	$___	$ ___	$ ___	%___
Subordinated debentures	$ ___	$ ___	$ ___	%___
Total	$ ___	$ ___	$ ___

The remaining $______ will go to the common stockholders.