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Praxair Corporation has spent $315,000 on research developing a new type of transformer. For this transformer to now be manufactured, the firm will need to expand into an empty building that it currently owns. The firm was offered $768,000 last week for that building. An additional $123,000 will be required for new equipment and building improvements. Labor and material costs are estimated at $18,700 per transformer. Interest expense on the loan needed to finance the production of this new transformer will be $39,000 a year. Which one of these correctly identifies the sunk costs?

A. $768,000 value of the building

B. $315,000 for research

C. $768,000 value of the building plus $123,000 for new equipment and building improvements

D. $39,000 for interest plus $315,000 for research

E. $768,000 for the building plus $315,000 for research