Use the following information for Questions 38 40:

Hopeful Companys balance sheet is as follows:

Hopeful Company Balance Sheet, pre-quasi-reorganization
Assets		Liabilities and Equity
Cash	$ 60,000	Loans payable	$1,220,000
Inventories	550,000	Common stock, $10 par	550,000
Property (net)	950,000	Additional paid-in capital	400,000
	________	Retained earnings	(610,000)
Total	$1,560,000	Total	$1,560,000

The company enters into a quasi-reorganization. Pursuant to this plan, inventories are written down by $50,000 and property is reduced by $180,000. The par value of the common stock is reduced to $2/share.

38. After the quasi-reorganization, total assets are reported at:

a. $1,560,000

b. $1,790,000

c. $1,330,000

d. $1,270,000

39. At the completion of the quasi-reorganization process, the balance in additional paid-in capital is:

a. $230,000

b. $0

c. $400,000

d. $ 55,000

40. At the completion of the quasi-reorganization process, the balance in the common stock, $2 par account is:

a. $550,000

b. $440,000

c. $ 55,000

d. $110,000