Inventory Obsolescence and Write

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Down: A company manufactures specialized electronic components for a rapidly evolving industry. They have a significant inventory of a component

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costing $

$1$

$.$

$2$

$$million

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$$that is on the verge of becoming obsolete due to technological advancements. The company estimates they could sell the existing inventory at a

$4$

$0$

$\%$

$$discount$,$ incur additional rework costs of $

$1$

$5$

$0$

$,$

$0$

$0$

$0$

$$for limited sales, or scrap the inventory entirely with a disposal cost of $

$5$

$0$

$,$

$0$

$0$

$0$

$.$

$$Calculate the net realizable value of the inventory. Determine the amount of inventory write

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down necessary. Prepare the journal entries to record the write

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down and any subsequent sale or disposal. Discuss the qualitative factors the company should consider beyond the financial calculations. Note: Kindly do not provide chat gpt answers, posting this question

$3$

rd time here. If i feel the question is from chatgpt and copied from any other source, you will get

$5$

$$dislikes with red rating & I'll report

$********$Wrong answers will get $10$ dislikes. Need a Genuine and correct answer. Do not copy from others.