GKD Construction purchased a truck 6 years ago at a cost of $71600. Because the old truck required an overhaul of $4100 last year, and repairs of $2500 are needed in the current year, the company is now planning to purchase a new truck to replace the old one. The old truck has a trade-in value of $5400. The cost of the new truck is $82400. What amount of these costs represent sunk costs? $83600 O $71600 O $81100 O $75700 SUF
GKD Construction purchased a truck 6 years ago at a cost of $71600. Because the old truck required an overhaul of $4100 last year, and repairs of $2500 are needed in the current year, the company is now planning to purchase a new truck to replace the old one. The old truck has a trade-in value of $5400. The cost of the new truck is $82400. What amount of these costs represent sunk costs? $83600 O $71600 O $81100 O $75700 SUF
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:GKD Construction purchased a truck 6 years ago at a cost of $71600. Because the old truck required an overhaul of $4100 last year,
and repairs of $2500 are needed in the current year, the company is now planning to purchase a new truck to replace the old one. The
old truck has a trade-in value of $5400. The cost of the new truck is $82400.
What amount of these costs represent sunk costs?
$83600
O $71600
O $81100
O $75700
SUF
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