On December 31, 2016, Larkspur Inc. borrowed $810,000 at 13 % payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: June 1, $324,000; July 1, $486,000; September 1, $972,000; December 1, $486,000. The building was completed in April 2018. Additional information is provided as follows. 1. Other debt outstanding 10-year, 11% bond, dated December 31, 2010, interest payable annually $8,100,000 2. 15-year, 13% note, dated December 31, 2004, interest payable annually Interest revenue earned in 2017 $2,025,000 $4,860