79

Armstrong Corporation manufactures bicycle parts. The company currently has a $21,000 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $9,000, or modified for $12,000 and sold for $22,300.

Exercise 14-35 Part 2

2-a. Calculate the benefit under each alternative for disposing of the obsolete parts. 2-b. How should the obsolete parts be disposed?