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Market Values and Book Values Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $9.5 million.
The machinery can be sold to the Romulans today for $6.5 million. Klingon's current balance sheet shows net fixed assets of $5.2 million, current liabiities of $2.4 million, and net working capital of $800,000.
If all the current assets were liquidated today, the company would receive $2.6 million cash. What is the book value of Klingon's assets today? What is the market value?
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