Problem 10-7 Splish Inc. is a book distributor that had been operating in its original facility since 1987. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Splish since 2012. Splish' original facility became obsolete by early 2017 because of the increased sales volume and the fact that Splish now carries CDs in addition to books. On June 1, 2017, Splish contracted with Black Construction to have a new building constructed for $4,080,000 on land owned by Splish. The payments made by Splish to Black Construction are shown in the schedule below. Date Amount July 30, 2017 January 30, 2018 May 30, 2018 $918,000 1,530,000 1,632,000 $4,080,000 Total payments Construction was completed and the building was ready for occupancy on May 27, 2018. Splish had no new borrowings directly associated with the new building but had the following debt outstanding at May 31, 2018, the end of its fiscal yeair