Tawstir corporation has 500 obsolete personal computers


Tawstir Corporation has 500 obsolete personal computers that are carried in inventory at a total cost of $720,000. If these computers are upgraded at a total cost of $190,000, they can be sold for a total of $250,000. As an alternative, the computers can be sold in their present condition for $50,000.

What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

A) $750,000 disadvantage

B) $10,000 advantage

C) $60,000 advantage

D) $200,000 advantage

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Financial Accounting: Tawstir corporation has 500 obsolete personal computers
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