Tawstir Corporation Has 800 Obsolete Personal Computers That Are Carried

question 162

Multiple Choice

Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost of $1,100,000. If these computers are upgraded at a total cost of $40,000, they can be sold for a total of $750,000. As an alternative, the computers can be sold in their present condition for $690,000.
-The sunk cost in this situation is:

• A)$40,000
• B)$750,000
• C)$690,000
• D)$1,100,000

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