The What-Not Shop Owns the Building in Which It Is

question 12

Multiple Choice

The What-Not Shop owns the building in which it is located. This building initially cost $647,000 and is currently appraised at $819,000. The fixtures originally cost $148,000 and are currently valued at $65,000. The inventory has a book value of $319,000 and a market value equal to 1.1 times the book value. The shop expects to collect 96 percent of the $21,700 in accounts receivable. The shop has $26,800 in cash and total debt of $414,700. What is the market value of the shop's equity?

• A) $867,832
• B) $900,166
• C) $695,832
• D) $775,632
• E) $1,190,332

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