Atwood Industries is considering disposing of equipment with an original cost of $400,000 and accumulated depreciation of $300,000. To replace the existing equipment with new equipment which costs, $500,000, Atwood would also incur an equipment removal fee of $75,000.

What is the sunk cost as of the consideration date?

Group of answer choices

a) $400,000

b) $100,000

c) $300,000

d) $575,000

e) $500,000

f) $75,000