Problem

Mondesto Company has the following: Unsecured creditors$230,000Liabilities with prior...

Mondesto Company has the following:

Unsecured creditors

$230,000

Liabilities with priority

110,000

Secured liabilities:

 

Debt 1, $210,000; value of pledged asset

180,000

Debt 2, $170,000; value of pledged asset

100,000

Debt 3, $ 120,000; value of pledged asset

140,000

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 $142,000. For how much do these free assets have to be sold so that the creditors associated with Debt 2 receive exactly $142,000?

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