Disposal of Assets A company has an inventory of 3,500 different parts for a line...
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Accounting
Disposal of Assets A company has an inventory of 3,500 different parts for a line of cars that has been discontinued. The net book value (NBV) of this inventory is $65,000. The parts can be either remachined at a total additional cost of $32,500 and then sold for $45,000 or sold as-is for $3,250.
Required:
Calculate the net benefit or loss of remachining the parts instead of scrapping them.
May I please receive a step-by-step walkthrough of each step.
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