market Values and Book Values [LO 1]

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $8 million. The machinery can be sold to the Romulans today for $6.7 million. Klingon’s current balance sheet shows net fixed assets of $3.1 million, current liabilities of $790,000, and net working capital of $145,000. If all the current assets were liquidated today, the company would receive $865,000 cash. (Enter your answer as directed, but do not round intermediate calculations.)

Requirement 1:What is the book value of Klingon’s total assets today? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

  Total asset book value$   

Requirement 2:What is the market value of Klingon’s total assets?