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)

Question

Quizplus · Accepted Answer

The relevant figures are the net gain from adapting the equipment ($136,000 market value - $64,000 adaptation cost) and the offer from Tripac ($88,000).

Answer the Following Question(s)using the Information Below