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Mondesto Company has the following debts: Unsecured creditors $ 254,000 Liabilities with priority 134,000 Secured liabilities: Debt 1, $258,000; value of pledged asset 204,000 Debt
Mondesto Company has the following debts:
Unsecured creditors $ 254,000
Liabilities with priority 134,000
Secured liabilities: Debt 1, $258,000; value of pledged asset 204,000
Debt 2, $204,000; value of pledged asset 124,000
Debt 3, $144,000; value of pledged asset 188,000
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 $176,000. For how much do these free assets have to be sold so that the creditors associated with Debt 2 receive exactly $176,000?
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