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39 Spicer Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Old Machine $390,000
39 Spicer Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Old Machine $390,000 New Machine $530,000 Accumulated Depreciation 180,000 -0- Remaining useful life 6 years -0- Useful life Annual operating costs -0- $167,000 10 years $151,500 If the old machine is replaced, it can be sold for $120,000. Which of the following amounts is a sunk cost? A. $167,000 OB. $151,500 OC. $210,000 OD. $180,000
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