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Delaney Company Is Considering Replacing Equipment Which Originally Cost $600,000

Question 94

Multiple Choice

Delaney Company is considering replacing equipment which originally cost $600,000 and which has $420,000 accumulated depreciation to date.A new machine will cost $790,000.What is the sunk cost in this situation?


A) $370,000
B) $790,000
C) $180,000
D) $190,000

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