Mondesto Company has the following debts: Unsecured creditors. Liabilities with priority Secured liabilities: Debt 1, $244,000; value of pledged asset Debt 2, $207,000; value of pledged asset Debt 3, $137,000; value of pledged asset $ 247,000 127,000 197,000 117,000 174,000 The company also has a number of other assets that are not pledged in any way. If the company is liquidated, the creditors holding Debt 2 want to receive at least $175,500. Selling value of free assets Required: How much cash in total must be generated from the free assets so that the creditors associated with Debt 2 will receive exactly that balance?

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