Please please explain part 2.

PART 4 The stockholders' equity of a company was as follows: Common Stock ($10 par) Paid-in Capital, Excess of Par Deficit Total Stokholders' Equity 800,000 1,200,000 (1,780,000) 220,000 The company underwent an quasi reorganization. Make the journal entries for the following: (1). Reduce the value of inventory by $60,000. (2). Complete the quasi reorganization. (3). What is the par value of the Common Stock after the quasi reorganization? PART 4 The stockholders' equity of a company was as follows: Common Stock ($10 par) Paid-in Capital, Excess of Par Deficit Total Stokholders' Equity 800,000 1,200,000 (1,780,000) 220,000 The company underwent an quasi reorganization. Make the journal entries for the following: (1). Reduce the value of inventory by $60,000. (2). Complete the quasi reorganization. (3). What is the par value of the Common Stock after the quasi reorganization