Cornerstone, Inc. has $145,000 of inventory that suffered minor smoke damage from a fire in...
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Accounting
Cornerstone, Inc. has $ of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods as is for $; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $ There the goods could be sold for $ What alternative is more desirable and what is the relevant cost for that alternative?
Multiple Choice
Sell as is $
Clean and ship to outlet center, $
Clean and ship to outlet center, $
Clean and ship to outlet center, $
Neither alternative is desirable, as both produce a loss for the firm.
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