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

question 13

Multiple Choice

Delaney Company is considering replacing equipment that originally cost $600,000 and that has $420,000 accumulated depreciation to date. A new machine will cost $790,000, and the old equipment can be sold for $8,000. What is the sunk cost in this situation?

• A) $172,000
• B) $180,000
• C) $188,000
• D) $290,000

---

Definitions:

Illicit Drug

Substances whose production, sale, or use is prohibited by law, often associated with addictive properties and negative health effects.

Adolescent Drug Use

The consumption of legal or illegal substances by individuals in their teenage years, which can significantly affect mental and physical development.

Tolerance

The acceptance of an element, habit, or practice without negative reaction, or the body's diminishing response to a substance due to repeated exposure.

Increasing Amounts

A term referring to any situation or parameter that is continuously growing or becoming greater in number, size, value, or volume.