The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are upgraded at a total cost of $170,000, they can be sold for a total of $230,000. As an alternative, the calculators can be sold in their present condition for $40,000.

What is the financial advantage (disadvantage) to the company from upgrading the calculators?

Garrison 16e Rechecks 2017-12-15

Multiple Choice

• $190,000

• ($630,000)

• $20,000

• ($60,000)