Stringent performance measures can lead to increased time, increased scope, and increased cost

Sunk costs may be defined as unavoidable future costs resulting from past decisions

Indicate whether the statement is true or false.

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