Question: Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost ?

Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost?
Old
Machine
Replacement
Machine
Original cost
$ 70 comma 000$70,000
$ 46 comma 000$46,000
Remaining useful life in years
55
55
Current age in years
55
00
Book value
$ 33 comma 000$33,000
Current disposal value in cash
$ 9 comma 000$9,000
Future disposal value in cash(in 5 years)
$ 0$0
$ 0$0
Annual cash operating costs
$ 7 comma 000$7,000
$ 4 comma 500$4,500

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