LBC Corporation filed a bankruptcy petition on January 2022. On March 1, 2022, the trustee provided the following information about the corporations financial affairs:

Assets Book value Realizable Value

Cash P40,000 P40,000

Accounts receivable-net 200,000 150,000

Inventories 300,000 140,000

Plant assets-net 500,000 560,000

Total Assets P1,040,000

Liabilities

Liabilities for priority claims P160,000

Accounts payable-unsecured 300,000

Notes payable, secured by accounts receivable 200,000

Mortgage payable, secured by all plant assets 440,000

Total Liabilities P1,100,000

The expected recovery percentage of unsecured creditors:

a. 25%

b. 41.5%

c. 40%

d. 60%