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Chiarelli Company has old inventory on hand that cost $36,000. Its scrap value is$48,000. The inventory could be sold for $120,000 if manufactured further at
Chiarelli Company has old inventory on hand that cost $36,000. Its scrap value is$48,000. The inventory could be sold for $120,000 if manufactured further at an additional cost of $36,000. What should Chiarelli do?
a.Sell the inventory for $48,000 scrap value
b.Dispose of the inventory to avoid any further decline in value
c.Hold the inventory at its $36,000 cost
d.Manufacture further and sell it for $120,000
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