Mannheim Corporation is ready to emerge from Chapter 11 bankruptcy under a reorganization plan accepted...
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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 |
New equity interests in the reorganized company are $160,000. The present value of future cash flows from the reorganized company's operating assets is $2,370,000. The compromised amount of Mannheim's prepetition liabilities is
$1,360,000.
$1,390,000.
$2,210,000.
$ 990,000.
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