Fact Pattern 30-1B In January,Jazz Dance Studio Owes Kay,its Musical Director,$1,800 for Cur?rent

Fact Pattern 30-1B
In January,Jazz Dance Studio owes Kay,its musical director,$1,800 for cur?rent wages,receives $700 as a down payment for dance lessons from Lora,and pays a Music,Inc. ,a sheet music supplier,$1,500 of $3,000 owed.In February,the studio files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 30-1B.The highest priority with respect to payment of claims belongs to

A) Kay and Music,Inc.
B) Jazz Dance Studio.
C) Lora.
D) unnamed general creditors.

Correct Answer:

Verified

Show Answer