Cornerstone, Inc. has $$145,000$ of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods $"$as is$"$ for $$51,000$; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $$20,000.$ There the goods could be sold for $$100,000.$ What alternative is more desirable and what is the relevant cost for that alternative?

Multiple Choice

Sell $"$as is$,"$ $$145,000.$

Clean and ship to outlet center, $$20,000.$

Clean and ship to outlet center, $$120,000.$

Clean and ship to outlet center, $$165,000.$

Neither alternative is desirable, as both produce a loss for the firm.