Use the Information Below for Dakota Corp At the End of 2018,Dakota Issued Bonds at Par Value

Multiple Choice

Use the information below for Dakota Corp.for 2017 and 2018 to answer the following question: $\begin{array}{lr}\text { Bonds payable, December } 31,2017 & \$ 500,000 \\\text { Bonds payable, December } 31,2018 & 800,000 \\\text { Loss on bond retirement-2018 } & 15,000 \\\text { Interest expense on bonds-2018 } & 45,000\end{array}$ At the end of 2018,Dakota 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 2017 (before their maturity date) .All interest expense was paid in cash during 2018.
How much did Dakota pay to retire the $500,000 bond issue during 2018?

A) $485,000
B) $500,000
C) $515,000
D) $560,000