Damaged and obsolete goods that can be sold:

A) Are never counted as inventory.
B) Are included in inventory at their full cost.
C) Are included in inventory at their net realizable value.
D) Should be disposed of immediately.
E) Are assigned a value of zero.

Damaged and obsolete goods that can be sold are included in inventory at their net realizable value. Net realizable value is the estimated selling price less any costs of completion, disposal, and transportation. This is because the damaged or obsolete goods can still generate some revenue for the company, although it may not be at their original cost.