A company enters Chapter 7 bankruptcy proceedings. Its balance sheet, prepared using GAAP for a company with continuing operations, is as follows:

Cash	$ 15,000	Accounts payable	$ 90,000
Inventories	100,000	Loans payable	300,000
Plant and equipment, net	250,000	Estate equity (deficit)	(25,000)
Total	$365,000	Total	$365,000

The plant and equipment is security for one of the loans, with a balance of $130,000. The other liabilities are unsecured. The following transactions occur:

Inventories with a book value of $60,000 were sold for $40,000.

The plant and equipment was sold for $200,000. The loan secured by the plant and equipment was paid.

Wages and administrative expenses of $10,000 were accrued.

An initial payment of 40 cents per dollar of indebtedness was paid to the unsecured creditors.

The statement of realization and liquidation reports liabilities not liquidated of:

Select one:

a. $224,000

b. $156,000

c. $166,000