The garrison Company now has $12,000 of obsolete inventory stock. This inventory could be sold for $5,000,
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Question:
The garrison Company now has $12,000 of obsolete inventory stock. This inventory could be sold for $5,000, or modified for $6,000 and sold for $15,000. The change in the company\'s net income resulting from modifying the inventory and then selling it opposed to selling it as is would be:
A) $3,000 decrease
B) $4,000 increase
C) $7,000 increase
D) $9,000 increase
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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