Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $5.5 million. The machinery can be sold to the Romulans today for $7.7 million. Klingons current balance sheet shows net fixed assets of $4.3 million, current liabilities of $860,000, and net working capital of $145,000. If all the current assets were liquidated today, the company would receive $975,000 cash.

Requirement 1: What is the book value of Klingons assets today? (Do not include the dollar sign ($).Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Book value $_____________

Requirement 2: What is the market value? (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Market value $____________