Multiple Choice
Answer the following question(s) using the information below.
Central Medical Supply Inc., a manufacturer of medical testing equipment, has $240,000 worth of an obsolete line of testing equipment. The obsolete equipment can be adapted to fit another line of testing equipment at a cost of $64,000; the market value would then be $136,000. However, Tripac offered to purchase the obsolete equipment as is for $88,000.
-Central Medical Supply Inc., a manufacturer of medical testing equipment, has $240,000 worth of an obsolete line of testing equipment. The obsolete equipment can be adapted to fit another line of testing equipment at a cost of $64,000; the market value would then be $136,000. However, Tripac offered to purchase the obsolete equipment as is for $88,000.
What are the relevant figures above for management in their decision?
A) ($240,000 + $64,000) ; ($88,000 - 0)
B) ($240,000 + $64,000) ; ($88,000 - 240,000)
C) ($240,000 + $64,000) ; ($88,000 + 240,000)
D) ($136,000 - $64,000) ; ($88,000 - 0)
E) ($136,000 - $64,000) ; ($88,000 - 240,000)
Correct Answer:

Verified
Correct Answer:
Verified
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