Question: On December 3 1 , 2 0 2 4 , Larkspur Inc. borrowed $ 1 , 2 9 0 , 0 0 0 at 1

On December 31,2024, Larkspur Inc. borrowed $1,290,000 at 13% payable annually
On December 31,2024, Larkspur Inc. borrowed $1,290,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: June 1, $516,000; July 1, $774,000; September 1, $1,548,000; December 1,$774,000. The building was completed in April 2026. Additional information is provided as follows:
Other debt outstanding
\table[[10-year, 11% bond, dated December 31,2018, interest payable annually,$12,900,000
to finance the construction of a new building. In 2025, the company

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