The Owner of Fred's Electronics Is Trying to Sell the Business

The owner of Fred's Electronics is trying to sell the business. The company built a building four years ago at a cost of $2.2 million. The building is currently appraised at $2.46 million. The firm's
Equipment originally cost $1.2 million and is currently valued at $700,000. The inventory is listed on
The statement of financial position at $150,000 but is only worth $125,000. The owner expects to
Collect 90 percent of the $300,000 in accounts receivable. The firm has $14,000 in cash and has
Total debt of $3.1 million. What is the market value of this firm?

A) $455,000
B) $469,000
C) $499,000
D) $504,000
E) $524,000