Which of the Following Would Be an Example of a Sunk

question 39

Multiple Choice

Which of the following would be an example of a sunk cost?

• A)The cost of a new oil burner that replaced a destroyed one
• B)The cost of an old inefficient oil burner that will be replaced by a more modern and efficient one
• C)Depreciation expense
• D)Lost revenue from a bad debt

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Definitions:

Premium Tax Credit

A refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Marketplace.

Household Income

Represents the total gross income of all members of a household, encompassing all sources of income including salaries, bonuses, dividends, and any other income streams before taxes.

Federal Poverty Level

A measure of income issued annually by the Department of Health and Human Services used to determine eligibility for various federal and state assistance programs.

EIC

The Earned Income Credit (EIC) is a tax credit for low-to-moderate-income working individuals and families, particularly those with children.