Answer:
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
