Klingon Cruisers, Inc., purchased new cloaking machinery four years ago for $12 million. The machinery can be sold to the Romulans today for $11.2 million. Klingon's current balance sheet shows net fixed assests of 9.2 million, current libabilities of $820,000, and net working capital of $222,000. If all the current account were liquidated today, the company would receive $1.04 million cash. what is the book value of Klingon's total assets today?
What is the sum of the market value of the NWC and the market value of fixed assets?

1. $10,242,000

2. $11,420,000

Explanation:

1. Calculation for what is the book value of Klingon's total assets today

First step is to calculate Current Assets using this formula

Current Assets = current liabilities + Net Working Capital (NWC)

Let plug in the formula

Current Assets= $820,000+$222,000

Current Assets=$1,042,000

Now let calculate Book value of total assets using this formula

Book value of total assets =Net fixed assets+Current Assets=

Let plug in the formula

Book value of total assets=$9,200,000+$1,042,000

Book value of total assets = $10,242,000

Therefore the book value of Klingon's total assets today will be $10,242,000

2.Calculation for the sum of the market value of the NWC and the market value of fixed assets

First step is to calculate Market value of NWC using this formula

Market Value of NWC =Current Assets -Current Liabilities

Let plug in the formula

Market Value of NWC=$1,040,000-$820,000

Market Value of NWC = $220,000

Now let calculate the sum of the market value of the NWC and the market value of fixed assets

Sum of market value of NWC and Fixed Assets =$11,200,000+$220,000

Sum of market value of NWC and Fixed Assets = $11,420,000

Therefore the sum of the market value of the NWC and the market value of fixed assets will be $11,420,000

a progressive tax is a tax that imposes a lower tax rate on low-income earners compared to those with a higher income, making it based on the taxpayer's ability to pay. that means it takes a bigger percentage from high income earners than it does from low income people.