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Required information [The following information applies to the questions displayed below.] Armstrong Corporation manufactures bicycle parts. The company currently has a $18,500 inventory of parts
Required information [The following information applies to the questions displayed below.] Armstrong Corporation manufactures bicycle parts. The company currently has a $18,500 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $6,300, or modified for $9,100 and sold for $19,700. Required: 1. Identify the relevance of the data given in the exercise to the decision about what to do with the obsolete parts. Current sales value for unmodified parts Sales value for modified parts Modification costs Current book value of inventory 2-a. Calculate the benefit under each alternative for disposing of the obsolete parts. 2-b. How should the obsolete parts be disposed? Complete this question by entering your answers in the tabs below. HUUUUUUUUUUUUUUUUUUUU Req 2A Reg 2B Calculate the benefit under each alternative for disposing of the obsolete parts. Benefit if parts are sold without modification Net benefit if parts are sold after being modified 2-a. Calculate the benefit under each alternative for disposing of the obsolete parts. 2-b. How should the obsolete parts be disposed? Complete this question by entering your answers in the tabs below. Req 2A Req 2B How should the obsolete parts be disposed? Jo How should the obsolete parts be disposed?
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