Duncan Corp

Multiple Choice

Duncan Corp. is declared bankrupt. The Royal Bank has a mortgage on its manufacturing plant. Employees have a claim for $1,000 each for unpaid wages. The trustee in bankruptcy's fees are $10,000. An unpaid supplier of steel has a claim for products supplied. Which of the above is a preferred creditor under the BIA?

A) The bank
B) The employees
C) The trustee in bankruptcy
D) The steel supplier
E) Both B and C