The balance sheet for the LR Corporation is present below. The only asset on the balance sheet which is in excess of fair market value is inventory, which has a fair market value of $60,000. LR is planning to undertake a quasi-reorganization. a. Explain why a company in LR's position may want to undertake a quasi-reorganization. b. What steps are involved in a quasi-reorganization? c. Present the necessary journal entries. Cash 30,000 Receivables 55,000 Inventory 70,000 PP&E (net) 175,000 330,000 Liabilities Common stock Additional paid in capital Retained earnings 150,000 100,000 220,000 (140,000) 330,000