Disposal of Assets A company has an inventory of 2,900 different parts for a line of cars that has been discontinued. The net book value (NBV) of this inventory is $72,500. Either the parts can be re-machined at a total additional cost of $36,250 and then sold for $43,500, or the parts can be sold as-is for $3,400. Required: Is there a net benefit or a net loss from remachining the parts versus scrapping the parts?

Required information [The following information applies to the questions displayed below.] Each of the following situations is independent: Disposal of Assets A company has an inventory of 2,900 different parts for a line of cars that has been discontinued. The net book value (NBV) of this inventory is $72,500. Either the parts can be re-machined at a total additional cost of $36,250 and then sold for $43,500, or the parts can be sold as-is for $3,400. Required: Is there a net benefit or a net loss from remachining the parts versus scrapping the parts