For how much do the free assets have to be sold

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Question - Mondesto Company has the following debts:

Unsecured creditors $235,000

Liabilities with priority 115,000

Secured liabilities:

Debt 1, $220,000; value of pledged asset 185,000

Debt 2, $181,000; value of pledged asset 105,000

Debt 3, $125,000; value of pledged asset 150,000

The company also has a number of other assets that are not pledged in any way. The creditors holding Debt 2 want to receive at least $154,400.

For how much do the free assets have to be sold so that the creditors associated with Debt 2 will receive exactly $154,400?

Reference no: EM132757725

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