What is the book value of klingon assets today

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Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6.1 million. The machinery can be sold to the Romulans today for $4 million. Klingon's current balance sheet shows net fixed assets of $3.1 million, current liabilities of $2.4 million, and net working capital of $460,000. If all the current assets were liquidated today, the company would receive $1.25 million cash.

Required:

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

(b) What is the market value?

Reference no: EM132028607

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