Suppose That You Close Down Your Coffee Shop and Sell

Multiple Choice

Suppose that you close down your coffee shop and sell your coffee maker for $500. If you originally bought the coffee maker for $4,000 and it lost $1,000 because of depreciation (i.e., age and use) , the sunk cost of the coffee maker is:

A) $3,500.
B) $3,000.
C) $2,500.
D) $1,500.