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Part b (Algo) Disposal of Assets A company has an inventory of 2,300 different parts for a line of cars that has been discontinued.
Part b (Algo) Disposal of Assets A company has an inventory of 2,300 different parts for a line of cars that has been discontinued. The net book value (NBV) of this inventory is $57,500. Either the parts can be re-machined at a total additional cost of $28,750 and then sold for $34,500, or the parts can be sold as-is for $2,800. Required: Is there a net benefit or a net loss from remachining the parts versus scrapping the parts?
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