Culver original facility became obsolete by early $2023$ because of the increased sales volume and the fact that Culver how cardes audio books and e$-$texts in addition to hard$-$copy books.

On June $1,2023,$ Culver contracted with Favre Construction to have a new building constructed for $$4,999,120$ on land owned by Culver Culver made the following payments to Favre Construction:

Date

Amount

July $30,2023$

$$1,199,640$

Jan, $30,2024$

$1,499,880$

May $31,2024$

June $30,2024$

$1,299,600$

Total payments

$$4,999,120$

Construction was completed and the building was ready for occupancy on May $27,2024.$ Culver had no new borrowings directly associated with the new building but had the following debt outstanding at May $31,2024,$ the end of its fiscal year:

$12\mathrm{.}5\%,4-$year note payable of $$2,000,000,$ dated April $1,2020,$ with interest payable annually on April $1$

$11\%,9-$year bond issue of $$2,999,800$ sold at par on June $30,2013,$ with interest payable annually on June $30$