Answer:
a. $16,426,000
b. $19,080,000
Explanation:
a. What is the book value of Klingon's assets today?
Book value of assets refer to the value of the total value of the assets of a company on its balance sheet after depreciation, impairment and amortization have been deducted.
This can be calculated for this question as follows:
Book value of Klingon's assets today = Book value of current assets + Book value of fixed assets
Book value of fixed assets = $15,500,000
Book value of current assets = Current liabilities + Net working capital = $700,000 + $226,000 = $926,000
Therefore, we have:
Book value of Klingon's assets today = $15,500,000 + $926,000 = $16,426,000
b. What is the market value?
Market value refer to the amount that can be realized from selling something such as the assets of a company.
This can be calculated for this question as follows:
Market value = Machinery sales amount + Current asset liquidated amount = $18,000,000 + $1,080,000 = $19,080,000
