1. A company is deciding whether to exchange an old asset for a new asset. Within the context of the exchange decision, and ignoring income tax considerations, the undepreciated book value of the old asset would be considered a(an) Sunk cost Irrelevant cost No No Yes No c. No Yes Yes d. Yes

1. A company is deciding whether to exchange an old asset for a new asset. Within the context of the exchange decision, and ignoring income tax considerations, the undepreciated book value of the old asset would be considered a(an) Sunk cost Irrelevant cost No No Yes No c. No Yes Yes d. Yes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. A company is deciding whether to exchange an old asset for a new asset. Within the context of the
exchange decision, and ignoring income tax considerations, the undepreciated book value of the old asset
would be considered a(an)
Sunk cost
Irelevant cost
No
No
Yes
No
No
Yes
d.
Yes
Yes
2. Expected future costs that will differ among alternatives
a. Opportunity cost.
b. Relevant costs.
c. Sunk cost.
d. Out-of-pocket costs.

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