Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year:

-What is Sudsy Soap's book value?

Question

Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year:
 
-What is Sudsy Soap's book value?

Quizplus · Accepted Answer

Sudsy Soap's book value is calculated by subtracting the total liabilities from total assets. In this case, the total assets are $2,100,000 and the total liabilities are $1,400,000. 
Therefore, the book value of Sudsy Soap is $700,000 (2,100,000 - 1,400,000). Option B is the correct choice.

Toni and Felix Are Considering Buying Stock