Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue? O The company is indiferrent O Sell, there is an incremental benefit of P27,000 O Don't sell, it will incur a loss of P73,000 O Sell there is an incremental benefit of P12.000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7EB: An auto repair company needs a new machine that will check for defective sensors. The machine has an...
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Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur
refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue?
O The company is indiferrent
O Sell, there is an incremental benefit of P27,000
O Don't sell, it will incur a loss of P73,000
O Sell, there is an incremental benefit of P12,000
Transcribed Image Text:Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue? O The company is indiferrent O Sell, there is an incremental benefit of P27,000 O Don't sell, it will incur a loss of P73,000 O Sell, there is an incremental benefit of P12,000
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