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Company X's has one Fixed Asset, which it purchased 3 years ago for $10,000. For each of those three years, the company has taken an
Company X's has one Fixed Asset, which it purchased 3 years ago for $10,000. For each of those three years, the company has taken an annual depreciation charge of $1,000 on that asset. A competitor has offered to purchase the asset today for $8,000. The balance sheet shows Current Liabilities of $2,000, and the company has $1,000 of Net Working Capital. If all of the Current Assets of the company were sold today, it would receive $4,000 for them. What is the Book Value of the firm's Total Assets?
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