Hodge Incorporated Has Some Material That Originally Cost $74,600

question 80

Multiple Choice

Hodge Incorporated has some material that originally cost $74,600. The material has a scrap value of $57,400 as is, but if reworked at a cost of $1,500, it could be sold for $54,400. What would be the financial advantage (disadvantage) of reworking and selling the material rather than selling it as is as scrap?

• A) ($79,100)
• B) ($21,700)
• C) ($4,500)
• D) $52,900

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