What is the market value

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Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7.7 million. The machinery can be sold to the Romulans today for $4.55 million. Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $2 million, and net working capital of $570,000. If all the current assets were liquidated today, the company would receive $1.05 million cash.

Required:

(a) What is the book value of Klingon's assets today?

(b) What is the market value?

 

Reference no: EM13292276

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