@dtat – yeah
@Claudia – I believe it can be less but it depends the circumstances. For example lets say a mother with 3 kids. If mother allows the father of one of the kids to claim that child in his return then she can only have 3 exemptions because her other child has already been claimed. Noticed though that might be subject to other legal rules I believe.
Sorry for this one @dtatham10 but I had to:
Fact Pattern: Knox operates an electronics store as a sole proprietor. On April 5, Knox was involuntarily petitioned into bankruptcy under the liquidation provisions of the Bankruptcy Code. On April 20, a trustee in bankruptcy was appointed, and an order for relief was entered. Knox’s nonexempt property has been converted to cash, which is available to satisfy the claims and expenses presented in the right column as appropriate. The cash available for distribution includes the proceeds from the sale of the stereos.
Claim by Dart Corp. (one of Knox’s suppliers) for computers ordered on April 6 and delivered to Knox on April 10
$20,000
Fee earned by the bankruptcy trustee
15,000
Claim by Boyd for a deposit given to Knox on April 1 for a computer Boyd purchased for personal use but that had not yet been received by Boyd
1,500
Claim by Noll Co. for the delivery of stereos to Knox on credit. The stereos were delivered on March 4, and a financing statement was properly filed on March 5. These stereos were sold by the trustee with Noll’s consent for $7,500, their fair market value
5,000
Fees earned by the attorneys for the bankruptcy estate
10,000
Claims by unsecured general creditors
1,000
Question: 20 What amount will be distributed to Boyd if the cash available for distribution is $50,800?
A. $900
B. $480
C. $800
D. $1,500
BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS
.