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. Klingons 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 Klingons 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, i.e. 1,234,567.)

Total asset market value