Each of the following situations is independent: Part b (Algo) Disposal of Assets A company has...

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Each of the following situations is independent: Part b (Algo) Disposal of Assets A company has an inventory of 2,350 different parts for a line of cars that has been discontinued. The net book value (NBV) of this inventory is $58,750. Either the parts can be re-machined at a total additional cost of $29,375 and then sold for $35,250, or the parts can be sold as-is for $2,850. Required: Is there a net benefit or a net loss from remachining the parts versus scrapping the parts? Each of the following situations is independent: Part b (Algo) Disposal of Assets A company has an inventory of 2,350 different parts for a line of cars that has been discontinued. The net book value (NBV) of this inventory is $58,750. Either the parts can be re-machined at a total additional cost of $29,375 and then sold for $35,250, or the parts can be sold as-is for $2,850. Required: Is there a net benefit or a net loss from remachining the parts versus scrapping the parts?

Answer rating: 100% (QA)

In the above case the company is having 2350 different parts of car which is discontinued having ... View the full answer