A Company Owes a Bank Loan of $250,000

A company owes a bank loan of $250,000. The loan is secured by the company's inventory, which has a book value of $275,000 and an estimated realizable value of $200,000. On a statement of affairs, the liability to the bank would be classified as:

A) $250,000 fully secured
B) $200,000 secured and $25,000 unsecured
C) $200,000 secured and $50,000 unsecured with priority
D) $200,000 secured and $50,000 unsecured