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?

Question

Business

Lauren Kane

20 June, 03:11

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?

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Answers (1)

Know the Answer?

Nikolas Peters · Answer 1

Sales price = $48,000

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