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

Question 28

Multiple Choice

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


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

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