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

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Expert Solution

jeff jeffy answered 3 weeks ago

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