Pratt Company has inventory on hand that cost $15,000. Its scrap value is $20,000. The inventory could be sold for $50,000 if manufactured further at an additional cost of $15,000. What should Pratt do?
Question 38 options:
A)
Manufacture further and sell it for $50,000
B)
Hold the inventory at its $15,000 cost
C)
Sell the inventory for $20,000 scrap value
D)
Dispose of the inventory to avoid any further decline in value