Mondesto Company has the following debts:

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 $175,500.

For how much do the free assets have to be sold so that the creditors associated with Debt 2 will receive exactly $175,500?

$ 247,000 127,000 Unsecured creditors Liabilities with priority Secured liabilities: Debt 1, $244,000; value of pledged asset Debt 2, $207,000; value of pledged asset Debt 3, $137,000; value of pledged asset 197,000 117,000 174,000 Selling value of free assets