Brook Corporation has filed for bankruptcy. Of the following debts Brook owes, indicate their priorities from the highest to the lowest.
I. Federal taxes unpaid for the previous year.
II. Wages of $3,000 owed to employees.
III. Balance of $5,000 owed to a creditor that had a security interest. This creditor got paid fully by selling off the collateral except for this $5,000 deficiency.
a. I, II, III.
b. I, III, II.
c. II, I, III.
d. III, I, II.
Answer: C
Tax
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