Use the information below for Fargo Corp for 2015 and 2016 to answer the following question. Bonds payable, December 31, 2015 $500,000 Bonds payable, December 31, 2016 800,000 Loss on bond retirement—2016 15,000 Interest expense on bonds—2016 45,000 At the end of 2016, Fargo issued bonds at par value for $800,000 cash. The proceeds from these bonds were used to retire the $500,000 bond issue

outstanding at the end of 2015 (before their maturity date). All interest expense was paid in cash during 2016. How much did Fargo pay to retire the $500,000 bond issue during 2016?
a. $485,000
b. $500,000
c. $515,000
d. $560,000

c