Problem
Mondesto Company has the following debts:
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?