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

Scrap Value

Scrap value is the estimated residual value of an asset at the end of its useful life, often considered when calculating depreciation.

Financial Advantage

The benefit obtained in financial terms, which can be through gains in revenues, reductions in costs, or improved profitability.

Reworked Material

Materials that have been corrected or modified after initial processing to meet the required standards.