Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6.5 million. The machinery can...

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6.5 million. The machinery can be sold to the Romulans today for $4.15 million. Klingon's current balance sheet shows net fixed assets of $2.8 million, current liabilities of $2 million, and net working capital of $470,000. If all the current assets were liquidated today, the company would receive $2.05 million cash

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

a. $ 4.15 Mil

b. $ 5.27 Mil

c. $6.62 Mil

d $ 8.97 Mil

e. $ 2.80 Mil

What is the market value?

a. $ 6.62 Mil

b. $ 6.20 Mil

c. $ 4.15 Mil

d. $ 2.05 Mil

e. $ 5,272,500

Expert Solution

jeff jeffy answered 3 months ago

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.0 million. The machinery can...

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.0 million. The machinery can be sold to the Romulans today for $6.2 million. Klingon’s current balance sheet shows net fixed assets of $2.8 million, current liabilities of $710,000, and net working capital of $130,000. If all the current accounts were liquidated today, the company would receive $825,000 cash. a. What is the book value of Klingon’s total assets today? (Do not round intermediate calculations and enter your answer...

Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can...

Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can be sold to the Romulans today for $3.6 million. Klingon’s current balance sheet shows net fixed assets of $2 million, current liabilities of $700,000, and net working capital of $216,000. If all the current assets and current liabilities were liquidated today, the company would receive $1.03 million cash. a. What is the book value of Klingon’s total assets today? b. What is the sum...

Klingon Widget Inc. purchased new cloaking machinery three years ago for 6 million dollars. The machinery...

Klingon Widget Inc. purchased new cloaking machinery three years ago for 6 million dollars. The machinery can be sold to the Romulans today for 4.8 million dollars. Klingons current balance sheet shows net fixed assets of 3.3 million dollars, current liabilities of 850,000 dollars, and net working capital of 220,000 dollars. If all the current accounts were liquidated today, the company would recieve 1.05 million dollars cash. What is the book value of Klingons total assets today? What is the...

Klingon Cruisers, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can...

Klingon Cruisers, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can be sold to the Romulans today for $3.6 million. Klingon's current balance sheet shows net fixed assets of $2 million, current liabilities of $700,000, and net working capital of $216,000. If all the current accounts were liquidated today, the company would receive $1.03 million cash. a. What is the book value of Klingon's assets today? (Do not round intermediate calculations and enter your answer...

Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $10 million. The machinery can...

Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $10 million. The machinery can be sold to the Romulans today for $9.1 million. Klingon's current balance sheet shows net fixed assets of $8 million, current liabilities of $780,000, and net working capital of $220,000. If all the current accounts were liquidated today, the company would receive $1.02 million cash. a. What is the book value of Klingon's assets today? (Do not round intermediate calculations and enter your answer...

3). Market values and book values-Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for$9.6...

3). Market values and book values-Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for$9.6 million. The machinery can be sold to the Romanulans today for $6.4 million. Klingon's current balance sheet shows net fixed assets of $4.9 million, current liabilities of $2.2 million, and net workimg capital of $850,000. If all current accounts were liquidated today, the company would receive $2.7 million cash. What is the book value of Klingon's assets today? what is the sum of NWC...

Q1.ABC Company purchased a new machinery two years ago for $61724. Today, it is selling this...

Q1.ABC Company purchased a new machinery two years ago for $61724. Today, it is selling this machinery for $21938. What is the after-tax salvage value if the tax rate is 36 percent? The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. Q2.ABC Company purchased $85737 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $52564. What is the After-tax Salvage...

URGENT you purchased a machine for $ 1.01 million three years ago and have been applying...

URGENT you purchased a machine for $ 1.01 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 40 %. If you sell the machine today (after three years of depreciation) for $ 719 comma 000, what is your incremental cash flow from selling the machine?

Brownie, LLC (“Brownie”) purchased property (land and a building) three years ago for $1.5 Million. Annual...

Brownie, LLC (“Brownie”) purchased property (land and a building) three years ago for $1.5 Million. Annual property tax is $25,000 and will not change in the foreseeable future. The property is currently rented for a net after-tax cash flow (inclusive of the aforesaid annual property tax) of $150,000 per year. Brownie is considering converting the property to a fitness center, and has estimated, the net aftertax cash flow of the fitness center will be $250,000 for the next five years....

You purchased a machine for $1.13 million three years ago and have been applying straight-line depreciation...

You purchased a machine for $1.13 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 22% . If you sell the machine today (after three years of depreciation) for $778,000 , what is your incremental cash flow from selling the machine?

Question