Problem
Marky Markers has been in the marker industry for 3 years. Of the P2 million assets that they have, the equipment with recorded value of P1Million was internally produced. With the current labor cost and inflation for materials, Marky may produce the same equipment in the same condition at 140% of its recorded value. Half of the other million pertains to an ink loader which was specially designed from Germany and specifically constructed for Marky by temporary employees. However, given some technological advances and availability of alternative materials, the equipment may be reproduced today at half its recorded value. The remaining assets are at their reproduction value. As of year end, the debt of Marky is thrice as high as its equity. No movement in the stocks issued of 50,000 was noted for the year.
Task
Determine:
• Net Book Value
• Net Reproduction Value
• Book Value Per Share
• Reproduction Value per share.