Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.3 million. The machinery can be sold to the Romulans today for $6.5 million. Klingon’s current balance sheet shows net fixed assets of $3.1 million, current liabilities of $740,000, and net working capital of $133,000. If all the current accounts were liquidated today, the company would receive $855,000 cash.
What is the book value of Klingon’s total assets today?
What is the sum of the NWC and market value of the fixed assets?