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TradeGas 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
TradeGas 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. Altematively, the canisters could be sold as is for $10,000 without further rework. Which altemative is more desirable and what is the net differential profit between the two altenatives? Altemative Net Differential Profit O A) Refit 0 B) Refit O C) Scrap O D) Scrap $30,000 $160,000 $10,000 $90,000
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