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Cornerstone, Inc. has $142,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods as is
Cornerstone, Inc. has $142,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $54,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $24,000. There the goods could be sold for $97,000. What alternative is more desirable and what is the relevant cost for that alternative? Multiple Choice Sell "as is,' $142,000 Clean and ship to outlet center, $24,000 Clean and ship to outlet center, $121,000. Clean and ship to outlet center, $166,000. Neither alternative is desirable, as both produce a loss for the firm
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