$20,000
$18,000
$2,000
$38,000
Answer is Wrong!
Answer is Right!
The correct answer is A. $20,000.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and disposal. Separable costs are the costs that would be incurred if the product or service were sold separately.
In this case, the net realizable value is $20,000 and the separable costs are $18,000. Therefore, the final sales will be $20,000.
Option B is incorrect because it is the amount of separable costs. Option C is incorrect because
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