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ohnson Co. is considering the sale of some obsolete inventory. The inventory cost $10,250 to produce, and can be sold 'as is' for $5,000. Alternatively,
ohnson Co. is considering the sale of some obsolete inventory. The inventory cost $10,250 to produce, and can be sold 'as is' for $5,000. Alternatively, Johnson can rework the inventory at a cost of $2,000 and sell the reworked product for $8,000. What would be the impact on net income if the company decides to update the units instead of selling them 'as is'?
A | $4,250 Decrease | |
B | $1,000 Decrease | |
C | $1,000 Increase | |
D | $6,000 Increase |
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