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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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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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