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Question 2 Joes Tree Service bought new machines 3 years ago for $600,000. The machines can be sold today to his brothers company Sams Tree
Question 2
Joes Tree Service bought new machines 3 years ago for $600,000. The machines can be sold today to his brothers company Sams Tree Service for $430,000.
Joes current statement of financial position show next fixed assets of $380,000, current liabilities of $720,000, and net working capital of $250,000.
If all Joes assets were liquidated today he would receive $1M.
- What is the book value of Joes company?
- What is the market value of Joes company?
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