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? Group of answer choices Hold the inventory at its $15,000 cost Dispose of the inventory to avoid any further decline in value Manufacture further and sell it for $50,000 Sell the inventory for $20,000 scrap value
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? Group of answer choices Hold the inventory at its $15,000 cost Dispose of the inventory to avoid any further decline in value Manufacture further and sell it for $50,000 Sell the inventory for $20,000 scrap value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
Group of answer choices
Hold the inventory at its $15,000 cost
Dispose of the inventory to avoid any further decline in value
Manufacture further and sell it for $50,000
Sell the inventory for $20,000 scrap value
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