Oakwood Co. filed a bankruptcy petition and liquidated its noncash assets. Oakwood was paying thirty-five cents on the dollar for unsecured claims. Jordan Co. held a mortgage of $180,000 on Oakwood's land which was sold for $130,000. The total amount of payment that Jordan should have received is calculated to be:

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Jordan Co. should receive the $130,000 from the sale of the land as a secured creditor. For the remaining $50,000 of the mortgage ($180,000 - $130,000), Jordan Co. is treated as an unsecured creditor and receives 35% of that amount, which is $17,500. Therefore, the total payment is $130,000 + $17,500 = $147,500.