Muffin's Masonry, Inc

Muffin's Masonry, Inc.'s balance sheet lists net fixed assets as $16 million. The fixed assets could currently be sold for $17 million. Muffin's current balance sheet shows current liabilities of $5.5 million and net working capital of $6.5 million. If all the current accounts were liquidated today, the company would receive $10.25 million cash after paying $5.5 million in liabilities. What is the book value of Muffin's Masonry's assets today? What is the market value of these assets?

A) Book Value: $28M; Market Value: $32.75M
B) Book Value: $32M; Market Value: $42.25M
C) Book Value: $32M; Market Value: $32.75M
D) Book Value: $28M; Market Value: $42.25M

Correct Answer:

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