Goodyear Company has spent $401,000 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 $1,226,000 last week for that building. An additional $313,000 will be required for new equipment and building improvements. Labor and material costs are estimated at $37,500 per transformer. Interest expense on the loan needed to finance the production of this new transformer will be $56,000 a year. Which one of these correctly identifies the sunk costs?

$1,226,000 value of the building

$401,000 for research

$1,226,000 value of the building plus $313,000 for new equipment and building improvements

$56,000 for interest plus $401,000 for research

$1,226,000 for the building plus $401,000 for research