Question: Please help me solve the following question with steps on how to do it. I already have the answer, I just need someone to explain

Please help me solve the following question with steps on how to do it. I already have the answer, I just need someone to explain in clear steps on how to do this problem.

Jason Company is considering replacing equipment that originally cost $600,000. New equipment costs $500,000, and the old equipment can be sold for $400,000. What is the sunk cost in this situation?

Ans: $600,000

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