6 Exercise 6-16A (Static) Identifying avoidable cost of a segment LO 6-4 28 nts Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold. Advertising expense $140,000 Supervisory salaries 300,000 eBook Allocation of companywide facility-level costs 130,000 Original cost of building 220,000 Book value of building 100,000 Market value of building 160,000 References Maintenance costs on equipment 112,000 Real estate taxes on building 12,000 Required Determine the amount of avoidable cost associated with the segment. Avoidable cost