Riorden Corporation's Balance Sheet Is as Follows The Company Enters into a Quasi-Reorganization with the Goal of l

Riorden Corporation's balance sheet is as follows:
$$\begin{array} { | l | r | l | r | } \hline \text { Assets } & & \text { Liabilities and Equity } & \\\hline \text { Cash } & \$ 25,000 & \text { Accounts payable } & \$ 400,000 \\\hline \text { Receivables } & 200,000 & \text { Loans payable } & 2,000,000 \\\hline \text { Merchandise } & 500,000 & \text { Common stock, \$5 par } & 500,000 \\\hline \text { Prepaid expenses } & 50,000 & \text { Additional paid-in capital } & 1,200,000 \\\hline \text { Plant and equipment } & 2,500,000 & \text { Retained earnings } & \{ 675,000 \} \\\hline \text { Intangible assets } & 150,000 & & \\\hline \text { Total } & \$ 3,425,000 & \text { Total } & \$ 3,425,000 \\\hline\end{array}$$ The company enters into a quasi-reorganization with the goal of starting with a zero balance in retained earnings. The fair values of its reported assets are as follows:
$$\begin{array} { | l | r | } \hline & { \text { Fair Value } } \\\hline \text { Receivables } & \$ 200,000 \\\hline \text { Merchandise } & 450,000 \\\hline \text { Prepaid expenses } & 50,000 \\\hline \text { Plant and equipment } & 2,000,000 \\\hline \text { Intangible assets } & 0 \\\hline\end{array}$$ Required
a. Riorden's par value will need to be adjusted to accomplish the quasi-reorganization. What par value per share is necessary?
b. Present Riorden's balance sheet immediately following the quasi-reorganization.