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Cornerstone, Inc. has $$141,000$ of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods $"$as is$"$ for $$52,000$; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $$25,000.$ There the goods could be sold for $$96,000.$ What alternative is more desirable and what is the relevant cost for that alternative?

Multiple Choice

Clean and ship to outlet center, $$121,000.$

Neither alternative is desirable, as both produce a loss for the firm.

Clean and ship to outlet center, $$166,000.$

Sell $"$as is$,"$ $$141,000.$

Clean and ship to outlet center, $$25,000.$