**Modeling Situation 5: Bankruptcy**

Prepared by:

Joseph Malkevitch

Department of Mathematics

York College (CUNY)

Jamaica, New York 11451

email:

__malkevitch@york.cuny.edu__

web page:

__http://york.cuny.edu/~malk/__

1. A firm has gone bankrupt. The confirmed remaining assets of the firm are $240,000. There are two claimants A and B whose verified claims are $60,000 and $440,000, respectively. What would be a fair way to distribute the $240,000 between the two claimants?

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