Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cornerstone, inc. has $145,000 of inventory that s

Cornerstone, Inc. has $145,000 of inventory that suffered minor smoke damage from a fire in...

70.2K

Verified Solution

Question

Accounting

Cornerstone, Inc. has $145,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $51,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $20,000. There the goods could be sold for $100,000. What alternative is more desirable and what is the relevant cost for that alternative?
Multiple Choice
Sell "as is," $145,000.
Clean and ship to outlet center, $20,000.
Clean and ship to outlet center, $120,000.
Clean and ship to outlet center, $165,000.
Neither alternative is desirable, as both produce a loss for the firm.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

C4h10 fuel is burned in the cylinder with 150% corporate air powered by SI engine. The...

Mechanical Engineering
Q

Please provide different ways of opinions!! QUESTION: Describe how you feel about the role of job outsourcing...

Accounting
Q

Many diseases lose their pathogenicity when in humans Humans with the disease are easily spotted...

Biology
Q

The potential difference between the plates of a parallel plate capacitor is changing at the...

Physics
Q

Find the surface area of the cone hint you must find the slant height first...

Geometry
Q

Hence find all the roots of the equation48x5 60x + 15x + 2 = 0.

Algebra
Q

Present volue of bonds payable; premium Moss...

Accounting
Q

Which of the following is not a difference between job order costing system and process...

Accounting
Q

The largest employer in Jones Corner, Indiana, builds travel trailers and has been battered by...

Accounting
Q

On December 31, 2017, Corotel Company's year-end, the unadjusted trial balance included the following items...

Accounting
Q

Show your work Determining current and deferred portion of tax expense and reconciling statutory...

Accounting
Q

1. The following intangible items are incurred on Jan 1st. What is the maximum allowable...

Accounting