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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:
$9,000 increase
$7,000 increase
$4,000 decrease
$3,000 decrease
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