Question 3 Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of R1.2 million that is currently appraised at R1.4 million. The equipment originally cost R700 000 and is currently valued at R400 000. The inventory is valued on the balance sheet at R350 000 but has market value of only one-half of that amount. The owner expects to collect 95 per cent of the R200 000 in accounts receivable. The firm has R10 000 in cash and owes a total of R1.4 million. The legal problems are personal and unrelated to the actual business. (a) What is the market value of this firm? (8 Marks)