Mathews Company is considering replacing equipment which originally cost $450,000 and which has $400,000 accumulated...
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Accounting
Mathews Company is considering replacing equipment which originally cost $450,000 and which has $400,000 accumulated depreciation to date. A new machine will cost $640,000 and the old equipment can be sold for $10,000.
What is the sunk cost in this situation?
$440,000
$40,000
$50,000
$190,000
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