Carelli Company Has Old Inventory on Hand That Cost $36000

question 210

Multiple Choice

Carelli Company has old inventory on hand that cost $36000. Its scrap value is $48000. The inventory could be sold for $120000 if manufactured further at an additional cost of $38000. What should Carelli do?

• A) Sell the inventory for $48000 scrap value
• B) Dispose of the inventory to avoid any further decline in value
• C) Hold the inventory at its $36000 cost
• D) Manufacture further and sell it for $120000.

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