Hilfmir Corporation filed for Chapter 11 bankruptcy on January 1, 2014. A summary of their financial status is shown below on June 30, 2014, at the date of the approved reorganization, along with the fair value of their assets. Per Books Fair Value Cash $ 134,000 $ 134,000 A/R - net 20,000 20,000 Inventory 32,000 40,000 Plant Assets - net 114,000 106,000 Patent 80,000 0 $ 380,000 A/P $ 60,000 Wages Payable 20,000 Prepetition liab. 250,000 Common Stock 140,000 Deficit (90,000) $ 380,000 Under the reorganization plan, the reorganization value has been set at $320,000. Prepetition liabilities include $30,000 of trade Accounts Payable and a $220,000 Note Payable to Bigg Bank. The reorganization plan calls for the Prepetition accounts payable to be paid at 80% at a later date, and the Note Payable for $220,000 to be replaced by a Note Payable for $76,000 and the issuance of common stock of the new entity for $100,000. The former stockholders will receive $40,000 in common stock of the new entity, Hilfmir, in exchange for their shares. Show the calculations to determine if Hilfmir is eligible for fresh-start accounting, and prepare a fresh-start balance sheet for the new entity, Hilfmir, as of July 1, 2014.