=+8-16 K Disposal of assets OBJECTIVES 2, 7 Answer the following questions. 1 A company has an
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=+8-16 K Disposal of assets OBJECTIVES 2, 7 Answer the following questions.
1 A company has an inventory of 1100 assorted parts for a line of engines that has been discontinued. The inventory cost is
$78000. The parts can be either:
(a) re-machined at total additional costs of $24500 and then sold for $33000 or
(b) sold as scrap for $6500. Which action is more profitable? Show your calculations.
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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