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Problem 2-5 Market Values and Book Values [LO 1] Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $5.3 million. The machinery can
Problem 2-5 Market Values and Book Values [LO 1] Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $5.3 million. The machinery can be sold to the Romulans today for $7.5 million. Klingon's current balance sheet shows net fixed assets of $4.1 million, current liabilities of $840,000, and net working capital of $143,000. If all the current assets were liquidated today, the company would receive $955,000 cash (Enter your answer as directed, but do not round intermediate calculations.) Requirement 1: What is the book value of Klingon's total assets today? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Total asset book value Requirement 2: What is the market value of Klingon's total assets? (Enter your answer in dollars, not millions of dollars, .e. 1,234,567.) Total asset market value
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