7. Regis Company is being liquidated in bankruptcy. Unsecured creditors without priority are expected to be paid 50 cents on the dollar. Sardo Company is the payee of a note receivable from Regis in the amount of $50,000 (including accrued interest), which is collateralized by machinery with a current fair value of $10,000. The total amount expected to be realized by Sardo on its note receivable from Regis is:

a. $35,000

b. $30,000

c. $25,000

d. $10,000

e. Some other amount