Question

Thyme Co. has office furniture that cost $53,400 . Thyme’s managers can either sell the office furniture in its current state for its book value for $13,800. If Thyme spends $7,200 to refurbish the office furniture and then sell the office furniture, net income will increase by $27,000. What is the sales price of the inventory after it’s been refurbished?

Answer 1

Sales price= $48,000

Step-by-step explanation:

Giving the following information:

Thyme Co. has office furniture that costs $ 53,400. Thyme’s managers can either sell the office furniture in its current state for its book value for $13,800. If Thyme spends $7,200 to refurbish the office furniture and then sell the office furniture, net income will increase by $27,000.

Sales price= 13,800 + 7,200 + 27,000= $48,000