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What is the net benefit from re-machining the parts

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Question - Disposal of Assets - A company has an inventory of 2,850 different parts for a line of cars that has been discontinued. The net book value (NBV) of this inventory is $71,250. Either the parts can be re-machined at a total additional cost of $35,625 and then sold for $42,750, or the parts can be sold as-is for $3,350.

Required - What is the net benefit from re-machining the parts versus scrapping the parts?

Reference no: EM133166155

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