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Trade Gas Corporation has 10,000 obsolete residential use propane storage canisters that are carried in inventory at the original manufacturing cost of $200,000. They are
Trade Gas Corporation has 10,000 obsolete residential use propane storage canisters that are carried
in inventory at the original manufacturing cost of $200,000. They are obsolete because of changes in
safety standards. If the canisters are refitted with new pressure valves for $50,000, they could be sold
for $90,000. Alternatively, the canisters could be sold as is for $10,000 without further rework. Which
alternative is more desirable and what is the net differential profit between the two
alternatives? Alterative Net Differential Profit
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