Question
Waterway Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price
Waterway Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered:
| Old Machine | New Machine | ||
| Price | $320000 | $640000 | |
| Accumulated Depreciation | 96000 | -0- | |
| Remaining useful life | 10 years | -0- | |
| Useful life | -0- | 10 years | |
| Annual operating costs | $256000 | $192000 |
If the old machine is replaced, it can be sold for $25600. Which of the following amounts is a sunk cost?
$224000
$640000
$256000
$192000
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
