A Company Is Emerging from Reorganization Under Chapter 11 of the Bankruptcy

A company is emerging from reorganization under Chapter 11 of the bankruptcy laws. It has allowed prepetition liabilities of $3,000,000, postpetition liabilities of $400,000, and new equity interests valued at $100,000. For fresh start reporting to apply, the reorganization value of the company's assets must be:

A) Less than $3,400,000
B) Less than $3,500,000
C) Between $3,000,000 and $3,500,000
D) More than $3,400,000