The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. If these microcomputers are upgraded at a total cost of $180,000, they can be sold for a total of $240,000. As an alternative, the microcomputers can be sold in their present condition for $50,000.

What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

$60,000 advantage

$190,000 advantage

$10,000 advantage

$740,000 disadvantage