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What should waterway do

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Question 1: Waterway Industries has old inventory on hand that cost $21750. Its scrap value is $29000. The inventory could be sold for $72500 if manufactured further at an additional cost of $21750. What should Waterway do?

Option 1: Hold the inventory at its $21750 cost

Option 2: Dispose of the inventory to avoid any further decline in value

Option 3: Manufacture further and sell it for $72500

Option 4: Sell the inventory for $29000 scrap value

Reference no: EM132487679

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