Rupert's Rims Balance Sheet Lists Net Fixed Assets as $15

question 109

Multiple Choice

Rupert's Rims balance sheet lists net fixed assets as $15 million. The fixed assets could currently be sold for $17 million. Rupert's current balance sheet shows current liabilities of $5 million and net working capital of $3 million. If all the current accounts were liquidated today, the company would receive $6 million cash after paying $5 million in liabilities. What is the book value of Rupert's assets today? What is the market value of these assets?

• A) $8 million, $23 million
• B) $23 million, $25 million
• C) $23 million, $28 million
• D) $31 million, $28 million

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Definitions:

Suspected Allergens

Substances believed to cause allergic reactions.

Lancet

A small, sharp medical instrument used for making incisions, especially for taking blood samples.

Radioallergosorbent Test

A blood test used to detect specific IgE antibodies to determine the substances a person is allergic to.

Antibodies

Proteins produced by the immune system in response to antigens, capable of specifically binding to and neutralizing foreign invaders such as bacteria and viruses.