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11. Pratt Company has old inventory on hand that cost $15,000. Its scrap value is $20,000. The inventory could be sold for $50,000 if manufactured
11. Pratt Company has old inventory on hand that cost $15,000. Its scrap value is $20,000. The inventory could be sold for $50,000 if manufactured further at an additional cost of $15,000. What should Pratt do?
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Manufacture further and sell it for $50,000
Hold the inventory at its $15,000 cost
Sell the inventory for $20,000 scrap value
Dispose of the inventory to avoid any further decline in value
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