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Breezy Company Is Disposing of Equipment That Was Originally Purchased

Question 32

Multiple Choice

Breezy Company is disposing of equipment that was originally purchased for $600,000 and has $240,000 of accumulated depreciation to date.The same equipment would cost $800,000 to replace.What is the total amount of sunk cost in this decision?


A) $240,000
B) $360,000
C) $840,000
D) $800,000

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