Mannheim Corporation is ready to emerge from Chapter 11 bankruptcy under a reorganization plan accepted by all parties. Mannheim's balance sheet shows:

Various assets	$2,000,000	Prepetition liabilities, fully secured	$ 400,000
		Prepetition liabilities subject to compromise	1,360,000
		Postpetition liabilities	820,000
		Shareholders' equity	(580,000)
TOTAL	$2,000,000	TOTAL	$2,000,000

There are no excess assets. The present value of future cash flows from the reorganized company's operating assets is $2,370,000. Mannheim's reorganization value is

$2,370,000.

$2,000,000.

$2,580,000.

$1,760,000.