Deficiency to Unsecured Creditors

Consider the following information for Evans, Inc. when the company entered bankruptcy proceedings:

Account Balance per Books
Dr (Cr)
Cash $30,500
Accounts receivable 600,000
Inventory 100,000
Prepaid expenses 14,200
Buildings, net 800,000
Equipment, net 125,000
Goodwill 100,000
Wages payable (80,000)
Taxes payable (45,000)
Accounts payable (980,000)
Notes payable (305,000)
Common stock (800,000)
Retained earnings—deficit 440,300
Total $0
Inventory with a realizable value of $35,000 is security for notes payable of $50,000. The buildings secure the remaining notes payable. Expected realizable values of the assets are:

Accounts receivable $400,000
Inventory 150,000
Buildings 340,000
Equipment 75,000
The prepaid expenses and goodwill have a realizable value of zero. The entire wages and taxes payable balances are priority liabilities.

Required

Compute the estimated deficiency to unsecured creditors.

Do not use negative signs with any of your answers below.