Raptor company is considering replacing equipment which originally cost $500,000 and which has $460,000 accumulated depreciation to date. a new machine will cost $790,000 and the old equipment can be sold for $8,000. what is the sunk cost in this situation?
a. $40,000b. $37,000c. $290,000d. $53,000

Rebel technology maintains its records using cash-basis accounting. during the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. at the beginning of the year, customers owe rebel $1,000. by the end of the year, customers owe $6,600. at the beginning of the year, rebel owes salaries of $5,600. at the end of the year, rebel owes salaries of $3,300. determine cash-basis net income and accrual-basis net income for the year.