Best Buy sold a big-screen TV and entertainment center to Jim for $2,000 on credit. Jim signed a promissory note and gave Best Buy a security interest in the TV and entertainment center. Best Buy filed a financing statement in the appropriate public office. When Jim defaulted on his monthly payments, owing a balance of $1,780, Best Buy’s attorney made arrangements to have the TV and entertainment center repossessed. The attorney placed classified ads in the local newspaper to sell the TV and entertainment center. The attorney’s fees are $300, the repo company charged $150, and the advertising costs were $50.
(A) If Jim chooses to redeem the property, how much must he pay to Best Buy to recover the property? Show your calculations.
(B) If Jim does not redeem and the TV and entertainment center are sold for $1,750, how will the money be dispersed? After dispersal of the money, what options does Best Buy have?