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 $130,000, they can be sold for a total of $190,000. 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?

Multiple Choice

$150,000

$(590,000)

$20,000

$(60,000)