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Question
renee company has old inventory on hand that cost $12,000. its scrap value is $16,000. the inventory could be sold for $40,000 if manufactured further at an additional cost of $12,000. what should renee do?
a.sell the inventory for $16,000 scrap value
b.dispose of the inventory to avoid any further decline in value
c.hold the inventory at its $12,000 cost
d.manufacture further and sell it for $40,000
Answer
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