Sparkman Co.filed a bankruptcy petition and liquidated its noncash assets.Sparkman was paying forty cents on the dollar for unsecured claims.Bailey Co.held a mortgage of $150,000 on Sparkman's land which was sold for $110,000.The total amount of payment that Bailey should have received is calculated to be

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Bailey Co. should receive $110,000 from the sale of the land (as it held a mortgage) and 40% of the remaining $40,000 unsecured claim, which is $16,000, totaling $126,000.