[The following information applies to the questions displayed below.] Armstrong Corporation manufactures bicycle parts. The company currently has a $19,500 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,000, or modified for $10,000 and sold for $20,300.

1. Identify the relevance of the data given in the exercise to the decision about what to do with the obselete parts

-Current Sales value for unmodified parts

- Sales value for modified parts

-Modification costs

- Current book value of inventory

2 A. Calulate the benefir under each alternative for disposing obselete parts

Benefit if parts are sold without modification

Net benefir is the parts are sold after being modified