Sunland Company has old inventory on hand that cost $15750. Its scrap value is $21000. The inventory could be sold for $52500 if manufactured further at an additional cost of $15750. What should Sunland do?

Sell the inventory for $21000 scrap value

Dispose of the inventory to avoid any further decline in value

Manufacture further and sell it for $52500

Hold the inventory at its $15750 cost