The Lantern Corporation Has 1,000 Obsolete Lanterns That Are Carried

question 74

Multiple Choice

The Lantern Corporation has 1,000 obsolete lanterns that are carried in inventory at ? manufacturing cost of $20,000. If the lanterns are remachined for $5,000, they could be sold for $9,000. Alternatively, the lanterns could be sold for scrap for $1,000. Which alternative is more desirable and what are the total relevant costs for that alternative?

• A)Scrap and $1, 000.
• B)Remachine and $25,000.
• C)Scrap and $21, 000.
• D)Remachine and $5,000.

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Definitions:

Canoe Prow

The forward-most part of a canoe, often intricately decorated in indigenous cultures, and designed for both functional steering and ceremonial or symbolic purposes.

Ceremonial Men's House

A communal building used by various indigenous cultures, primarily in Melanesia and Australia, for rituals and meetings exclusively attended by male members of the community.

Iatmul

A people of Papua New Guinea known for their elaborate wood carvings and culturally significant rituals centered around the Sepik River.

Tatanua Masks

Ceremonial masks from New Ireland, Papua New Guinea, used in rituals and known for their vibrant colors and elaborate designs.