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? Replacement

Fuller Industries is considering replacing a machine that is presently used

Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Replacement Machine $45,000 5 0 Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs Old Machine $60,000 5 5 $33,000 $10,000 $0 $8,000 $0 $4,000 A. $45,000 B. $33,000 C. $10,000 D. $60,000

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