On December 31, 2016, Barber Company borrowed $3,000,000 at 12% payable annually to finance the construction of a new warehouse. In 2017, the company made the following expenditures related to this warehouse:

On December 31, 2016, Barber Company borrowed $3,000,000 at 12% payable annually to finance the construction of a new warehouse. In 2017, the company made the following expenditures related to this warehouse: April 1: 550,000 1,800,000 August 1: 1,000,000 September 1: 250,000 November 1: Additional information is provided as follows: 1. Other debt outstanding a. 10-year, 11% bond, December 31, 2015, interest payable annually $4,000,000 b. 6-year, 10% note, dated December 31, 2014, interest payable annually $1,600,000 2. April 1, 2017, expenditure included land costs of $150,000 $49,000 3. Interest revenue earned in 2017