Hodge IncHas Some Material That Originally Cost $74,600

Multiple Choice

Hodge Inc.has some material that originally cost $74,600.The material has a scrap value of $57,400 as is,but if reworked at a cost of $1,500,it could be sold for $54,400.What would be the financial advantage (disadvantage) of reworking and selling the material rather than selling it as is as scrap?

A) ($79,100)
B) ($21,700)
C) ($4,500)
D) $52,900