Market Value versus Book Value Acme Bricks balance sheet lists net fixed assets as $40 million.The fixed assets could currently be sold for $50 million.Acme's current balance sheet shows current liabilities of $15 million and net working capital of $12 million.If all the current accounts were liquidated today,the company would receive $77 million cash after paying $15 million in liabilities.What is the book value of Acme's assets today? What is the market value of these assets?
A)$12 million, $77 million
B)$27 million, $92 million
C)$40 million, $50 million
D)$67 million, $142 million

Question

Quizplus · Accepted Answer

The book value of Acme's assets is the sum of net fixed assets ($40 million) and net working capital ($12 million), totaling $52 million. The market value is the sum of the current cash received ($77 million) and the market value of fixed assets ($50 million), totaling $127 million.

Market Value Versus Book Value Acme Bricks Balance Sheet Lists