The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total cost of $720,000. If these calculators are upgraded at a total cost of $110,000, they can be sold for a total of $170,000. As an alternative, the calculators can be sold in their present condition for $50,000.

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

Multiple Choice

• $10,000

• ($670,000)

• ($60,000)

• $120,000