Market Value Versus Book Value Rupert's Rims Balance Sheet Lists

question 102

Multiple Choice

Market Value versus Book Value 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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