Renee Company Has Old Inventory on Hand That Cost $12000

Multiple Choice

Renee Company has old inventory on hand that cost $12000. Its scrap value is $16000. The inventory could be sold for $40000 if manufactured further at an additional cost of $12000. What should Renee do?

A) Sell the inventory for $16000 scrap value
B) Dispose of the inventory to avoid any further decline in value
C) Hold the inventory at its $12000 cost
D) Manufacture further and sell it for $40000