Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $19,000: Cash $ 31,000 Accounts receivable 67,000 (worth $35,000) Inventory 77,000 (worth $63,000) Land (secures note A) 207,000 (worth $167,000) Building (secures bonds) 407,000 (worth $334,000) Equipment 127,000 (worth unknown) Accounts payable 187,000 Taxes payable to government 27,000 Note payable A 184,000 Note payable B 257,000 Bonds payable 307,000
The holders of note payable B want to collect at least $128,500.
To achieve this goal, how much does the company have to receive in the liquidation of its equipment?