Market Value versus Book Value Rupert's Rims balance sheet lists net fixed assets as $15 million.The fixed assets could currently be sold for $17 million.Rupert's current balance sheet shows current liabilities of $5 million and net working capital of $3 million.If all the current accounts were liquidated today,the company would receive $6 million cash after paying $5 million in liabilities.What is the book value of Rupert's assets today? What is the market value of these assets?
A)$8 million, $23 million
B)$23 million, $25 million
C)$23 million, $28 million
D)$31 million, $28 million

Question

Quizplus · Accepted Answer

The book value of the assets is $23 million (net fixed assets of $15 million + current assets of $8 million). The market value of the assets is $28 million (net fixed assets of $17 million + current assets of $11 million).

Market Value Versus Book Value Rupert's Rims Balance Sheet Lists