Ferry boat corporation has the following financial information: net fixed assets: book value: $2,500, market value: $3,000 net working capital: $700 current accounts liquidated: $1,500 abc corporation has $900 in long-term debt. what is the book value of equity?

Book value of equity is $2300

Explanation:

given data

net fix assets of book value=  $2500

Market value = $3000

Net working capital = $700

Current accounts liquidated =$1500

long-term debt = $900

to find out

What is the book value of equity

solution

we know that share holder equity is assets minus liability

so here

Book value of equity is = Book value of assets - Book value of liabilities  1

so

book value of assets = net working capital + net fixed assets of book value

book value of assets = 700 + 2500

book value  of assets = $3200

and

Book value of liabilities = long-term debt = $900

so from equation 1

Book value of equity is = 3200 - 900

Book value of equity is $2300