Disposal of AssetsA company has an inventory of 2,500 different parts for a line of cars that has been discontinued. The net book value (NBV) of this inventory is $55,000. The parts can be either re-machined at a total additional cost of $27,500 and then sold for $35,000, or the parts can be sold as-is for $2,750.

Required:

Is there a net benefit or a net loss from remachining the parts versus scrapping the parts?