Answer the Following Questions Using the Information Below:
Indium Services

question 95

Multiple Choice

Answer the following questions using the information below:
Indium Services, Inc., is considering replacing a machine. The following data are available:
$$\begin{array}{l}\begin{array} { l r r } &&\text { Replacement }\\& \text { Old Machine } & \text { Machine } \\\text { Ori ginal cost } & \$ 630,000 & \$ 490,000 \\\text { Useful life in years } & 10 & 5 \\\text { Current age in years } & 5 & 0 \\\text { Book value } & \$ 350,000 & - \\\text { Disposal value now } & \$ 112,000 & - \\\text { Disposal value in } 5 \text { years } & 0 & 0 \\\text { Antual cash operating costs } & \$ 98,000 & \$ 56,000\end{array}\end{array}$$
-Which of the data provided in the table is a sunk cost?

• A) the annual cash operating costs of the old machine
• B) the annual cash operating costs of the replacement machine
• C) the disposal value of the old machine
• D) the original cost of the old machine

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Definitions:

Private Property

Land or belongings owned by an individual or a legal entity, protected by law from unauthorized use or entry by others.

Article III

The section of the United States Constitution that establishes the judicial branch of the federal government, outlining the powers of the federal courts and judges.

Trial by Jury

A legal process in which a jury either makes a decision or makes findings of fact which are then applied by a judge.

Double Jeopardy

A legal principle that prohibits an individual from being tried twice for the same crime, ensuring protection against repeated legal actions.