Question
The Garrison Company now has $12,000 of obsolete inventory in stock. This inventory could be sold for $5,000, or modified for $6,000 and sold for
The Garrison Company now has $12,000 of obsolete inventory in stock. This inventory could be sold for $5,000, or modified for $6,000 and sold for $15,000. The change in the company's net income resulting from modifying the inventory and then selling it as opposed to selling it as is would be:
A. $9,000 increase
B. $7,000 increase
C. $4,000 decrease
D. $3,000 decrease
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Accounting And Finance For Non-Specialists
Authors: Eddie McLaney, Peter Atrill
11th Edition
1292244011, 9781292244013
