Hal's Hardware Store Defaults on a Debt to Intrastate Bank,which

Multiple Choice

Hal's Hardware store defaults on a debt to Intrastate Bank,which takes possession of the collateral securing the debt. Intrastate sells the collat-eral. The proceeds from the sale are applied first to

A) the balance of Hal's debt to Intrastate.
B) Hal's debts to other creditors.
C) Intrastate's expenses for the sale.
D) the minimum amount Hal's needs to stay in business.