Current Attempt in ProgressSwifty Corporation is contemplating the replacement of an oldmachine with a new one. The following information has beengathered:Old MachineNew Machine$420000$210000PriceAccumulated Depreciation63000-0-10 yearsRemaining useful life-0-10 yearsUseful life-0-Annual operating costs$126000$168000If the old machine is replaced, it can be sold for $16800.Which of the following amounts is a sunk cost?O $420000o $126000O $147000O $168000

Question
Asked Nov 10, 2019
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Current Attempt in Progress
Swifty Corporation is contemplating the replacement of an old
machine with a new one. The following information has been
gathered:
Old Machine
New Machine
$420000
$210000
Price
Accumulated Depreciation
63000
-0-
10 years
Remaining useful life
-0-
10 years
Useful life
-0-
Annual operating costs
$126000
$168000
If the old machine is replaced, it can be sold for $16800.
Which of the following amounts is a sunk cost?
O $420000
o $126000
O $147000
O $168000
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Current Attempt in Progress Swifty Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine $420000 $210000 Price Accumulated Depreciation 63000 -0- 10 years Remaining useful life -0- 10 years Useful life -0- Annual operating costs $126000 $168000 If the old machine is replaced, it can be sold for $16800. Which of the following amounts is a sunk cost? O $420000 o $126000 O $147000 O $168000

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Expert Answer

Step 1

Sunk cost: Sunk cost is the cost that has been incurred as a result of past events and such cost may not be affected as a result of future actions.

Step 2

Given information:

Old machine price=$210,000

Accumulated depreciation =$63,000

Step 3

Calculate the sunk cost...

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