Problem:
Klingon Widgets, Inc., purchased new cloaking machinery five years ago for $10 million. The machinery can be sold to the Romulans today for $9.1 million. Klingonâs current balance sheet shows net fixed assets of $8 million, current liabilities of $780,000, and net working capital of $220,000. If all the current assets were liquidated today, the company would receive $1.02 million cash.
Requirement:
Question: What is Book value of total assets and Market value of total assets
Note: Please explain comprehensively and give step by step solution.