Use the Information Below for Fargo Corp

question 87

Multiple Choice

Use the information below for Fargo Corp.for 2015 and 2016 to answer the following question. 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