Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,230,000 that is currently appraised at $1,430,000. The equipment originally cost $710,000 and is currently valued at $457,000. The inventory is valued on the balance sheet at $400,000 but has a market value of only one-half of that amount. The owner expects to collect 99 percent of the $220,200 in accounts receivable. The firm has $10,400 in cash and owes a total of $1,430,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?

(a). $1,705,598

(b). $657,000

(c). $1,305,598

(d). $1,085,398

(e). $885,398

Answer rating: 100% (QA)

e 885398 The market value of firm will be the difference between the market value of asset... View the full answer