Exercise 10-9 (Part Level Submission) on July 31, 2015, Bismarck Company engaged Duval Tooling Company to construct a special purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2015. To help finance construction, on July 31 Bismarck issued a $400,000, 3-year, 12% note payable at Wellington National Bank, on which interest is payable each July 31, $300,000 of the proceeds of the note was paid to Duval on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. on November 1, Bismarck a final $100,000 payment to Duval. Other than the note to Wellington, Bismarck's only outstanding liability at December 31, 2015, is a $30,000, B%, 6-year note payable, dated January 1, 2012, on which interest is payable each December 31.