Oriole Company is contemplating the replacement of an old machine with a new one. The following information has been gathered:

	Old Machine		New Machine
Price	$330000		$660000
Accumulated Depreciation	99000		-0-
Remaining useful life	10 years		-0-
Useful life	-0-		10 years
Annual operating costs	$264000		$198000

If the old machine is replaced, it can be sold for $26400. Which of the following amounts is a sunk cost?

$198000

$231000

$264000

$660000