Paramount Co.'s statement of affairs shows net free assets ofP520,000 (at realizable value) and unsecured liabilities without priority of P800,000 (at carrying amount). The accountant's working papers...

Paramount Co.'s statement of affairs shows net free assets of
P520,000 (at realizable value) and unsecured liabilities without priority of P800,000 (at carrying amount). The accountant's working papers show the following:

Suppliers

Balances

Athena Co.

600,000

Riley Co.

80,000

Naia Co.

120,000

Notes

Waived repayment ofP100,000

To be cancelled upon return of the goods

Rebate of P50,000 is available

Total

800,000

Mamminen

What is the estimated recovery percentage of unsecured creditors without priority?

a. 65%

b. 75%

c. 80%

d. 0%.