Question: Loser, Inc. has forced into bankruptcy and has begun to liquidate. Unsecured claims will be paid at the rate of 40 cents on the peso.

Loser, Inc. has forced into bankruptcy and has begun to liquidate. Unsecured claims will be paid at the rate of 40 cents on the peso. Cheater Co. holds a non-interest-bearing note receivable from Loser in the amount of P100,000, collateralized by machinery with a liquidation value of P25,000. The total amount realized by Cheater in this note receivable is:

P25,000

P40,000

P55,000

P65,000

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