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 $1,110,000 that is currently appraised at $1,310,000. The equipment originally cost $590,000 and is currently valued at $337,000. The inventory is valued on the balance sheet at $280,000 but has a market value of only one-half of that amount. The owner expects to collect 98 percent of the $160,200 in accounts receivable. The firm has $12,000 in cash and owes a total of $1,310,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?

$477,000 $645,996 $1,226,196 $946,196 $785,996