The Widget Co. purchased all of its fixed assets three years ago for $4 million. These assets can be sold today for $2 million. The current balance sheet shows net fixed assets of $2,500,000, current liabilities of $1,375,000, and net working capital of $725,000. If all the current assets were liquidated today, the company would receive $1.9 million in cash. The book value of the total assets today is and the market value of those assets is . $6,500,000; $3,900,000 $4,600,000; $3,125,000 $5,000,000; $3,125,000 $4,600,000; $3,900,000 $5,000,000; $3,900,000

Book value of the asset are the recorded costs of the assets included any adjustments like depreciation or amortization. Market value is the fair value and Ne realizable value of the assets.

Total Assets = Fixed Assets + Current Assets

Total Assets = Fixed Assets + (Working capital + Current Liabilities)

Placing Value in above formula

Total Assets = $2,500,000 + ($725,000 + $1,375,000)

Total Assets = $4,600,000

Market Value = Fair value of Fixed assets + Current assets fair value

Market Value = $2,000,000 + $1,900,000 = $3,900,000