Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6.7 million. The machinery can be sold to the Romulans today for $4.1 million. Klingon's current balance sheet shows net fixed assets of $3.35 million, current liabilities of $1.6 million, and net working capital of $560,000. If all the current assets were liquidated today, the company would receive $1.35 million cash.
Required:
(a) What is the book value of Klingon's assets today?
(b) What is the market value?
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