Aiyah, Inc

Multiple Choice

Aiyah, Inc. recently has had financial difficulty and is being liquidated by the Federal Bankruptcy Court. The firm has a liquidation value of $1,000,000-$400,000 from the fixed assets that served as collateral for the mortgage bonds and $600,000 from all other assets (all prior claims have been satisfied) . The firm's current capital structure is as follows: The common stockholders will receive ________ in the liquidation.

A) $500,000
B) $333,333
C) $198,000
D) $0