The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. If these microcomputers are upgraded at a total cost of $140,000, they can be sold for a total of $200,000. As an alternative, the microcomputers can be sold in their present condition for $50,000.
What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?
$10,000 advantage
$150,000 advantage
$60,000 advantage
$700,000 disadvantage