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How much should zar consider as sunk cost

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Question - At December 31, 2005, Zar Company had a machine with an original cost of P84,000, accumulated depreciation of P60,000 and an estimated salvage value of zero. On December 31, 2005, Zar was considering the purchase of a new machine having a five-year life, costing P 120,000 and having an estimated salvage value of P20,000 at the end of five years. In its decision concerning the possible purchase of the new machine, how much should Zar consider as sunk cost at December 31, 2005?

Reference no: EM132050910

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