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WHAT IS THE BOOK VALUE OF ASSETS TODAY?

WHAT IS THE BOOK VALUE OF ASSETS TODAY?

Purchased new machinerie three years ago for $7 million. The machinery can be sold today for $4.9 million. Current statement of finance position shows net fixed assets of $3.7 million current liabilities of $1.1 million and net working capital of $380 000. If all the current assets were liquidated today the company would receive $1.6 million cash. What is the book value of assets today? What is the market value?

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