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Saved Help Save & Exit Cornerstone, Inc. has $141,000 of inventory that suffered minor...

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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?
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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.
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