Pratt Company Has Old Inventory on Hand That Cost $15,000

Multiple Choice

Pratt Company has old 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?

A) Sell the inventory for $20,000 scrap value
B) Dispose of the inventory to avoid any further decline in value
C) Hold the inventory at its $15,000 cost
D) Manufacture further and sell it for $50,000