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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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