Question
The Advoc Company has 1,600 obsolete calculators that are carried in inventory at a total cost of $106,800. If these calculators are upgraded at a
The Advoc Company has 1,600 obsolete calculators that are carried in inventory at a total cost of $106,800. If these calculators are upgraded at a total cost of $40,000, they can be sold for a total of $120,000. As an alternative, the calculators can be sold in their present condition for $44,800. The sunk cost in this situation is:
| a. | $106,800 | |
| b. | $40,000 | |
| c. | $44,800 | |
| d. | $0 |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
