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Armstrong Corporation manufactures bicycle parts. The company currently has a $18,700 inventory of parts that have become obsolete due to changes in design specifications. The

Armstrong Corporation manufactures bicycle parts. The company currently has a $18,700 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $6,500, or modified for $9,300 and sold for $20,100.

Calculate the benefit under each alternative for disposing of the obsolete parts.

benefit if parts are sold without modification?

net benefit if parts are sold after modification?

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