Bill filed a petition for bankruptcy under chapter 7 of the bankruptcy act. bill listed, among others, the following debts: a debt to the national bank for $10,000 secured by his 1980 truck, which is valued at $3,500; an unsecured debt to his friend, francis; a $500 debt to the irs for 1989 federal income taxes; and a $500 student loan to the university which was due one year ago. in this scenario,
a. the $500 debt to the irs is a nondischargeable debt
b. francis can claim the debt without filing a proof of claim
c. the $500 student loan to the university is a dischargeable debt
d. the bank can receive preferential payment because the debt owed to it is the highest

P11.2a (lo 2, 4) fechter corporation had the following stockholders’ equity accounts on january 1, 2020: common stock ($5 par) $500,000, paid-in capital in excess of par—common stock $200,000, and retained earnings $100,000. in 2020, the company had the following treasury stock transactions. journalize and post treasury stock transactions, and prepare stockholders’ equity section. mar. 1 purchased 5,000 shares at $8 per share. june 1 sold 1,000 shares at $12 per share. sept. 1 sold 2,000 shares at $10 per share. dec. 1 sold 1,000 shares at $7 per share. fechter corporation uses the cost method of accounting for treasury stock. in 2020, the company reported net income of $30,000. instructions a. journalize the treasury stock transactions, and prepare the closing entry at december 31, 2020, for net income. b. open accounts for (1) paid-in capital from treasury stock, (2) treasury stock, and (3) retained earnings. (post to t-accounts.) c. prepare the stockholders’ equity section for fechter corporation at december 31, 2020.