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147 Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine
147
Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered:
Old Machine | New Machine | ||
Price | $420000 | $840000 | |
Accumulated Depreciation | 126000 | -0- | |
Remaining useful life | 10 years | -0- | |
Useful life | -0- | 10 years | |
Annual operating costs | $336000 | $252000 |
If the old machine is replaced, it can be sold for $33600. Which of the following amounts is a sunk cost?
| $336000 |
| $840000 |
| $294000 |
| $252000 |
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