A company has 1,000 outstanding common shares with a $5/share par value, additional paid-in capital of $5,000, and a deficit of $6,500 in retained earnings. It reduces its assets by $2,000 to report them at fair value.

To achieve a successful quasi-reorganization, the company must reduce the par value of its common shares by:

A.$2.50 per shareB.$3.50 per shareC.$3.00 per shareD.$2.00 per share