Pratt Company has old inventory on hand that cost $15,000. Its scrap value is $20,000. The inventory

Question:

Pratt Company has old inventory on hand that cost $15,000. Its scrap value is $20,000. The inventory could be sold for $50,000 if manufactured further at an additional cost of $15,000. What should Pratt do?
Dispose of the inventory to avoid any further decline in value.
Sell the inventory for $20,000 scrap value.
Hold the inventory at its $15,000 cost.
Manufacture further and sell it for $50,000.