The Tolar Company Has 400 Obsolete Desk Calculators That Are

question 137

Multiple Choice

The Tolar Company has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a total of $30,000. As an alternative, the calculators can be sold in their present condition for $11,200.
-What is the sunk cost in this situation?

• A) $0.
• B) $10,000.
• C) $11,200.
• D) $26,800.

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Definitions:

Electronic Funds Transfers

The digital transfer of money from one bank account to another either within the same financial institution or across different banks, via computer-based systems.

Principal Advantages

Key benefits or main positives associated with a method, strategy, or system.

Debit Memos

Debit memos are documents issued by a seller to a buyer to adjust upward the amount a buyer owes, often due to an undercharge, returned goods, or other corrections to an invoice.

Credit Memos

Documents issued by a seller to decrease the amount a buyer owes, often due to a return or refund.