On December 31, 2024, Waterway Inc. borrowed $4,140,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $496,800; June 1, $828,000; July 1, $2,070,000; December 1, $2,070,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. 3. Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $207,000. Interest revenue of $67,620 earned in 2025. $5,520,000 2,208,000

On December 31,2024 . Waterway inc. borrowed $4,140,000 at 13% payable annually to finance the construction of a new building In 2025, the company made the following expenditures related to this building: March 1, $496,800; June 1, $828,000; July 1, $2,070,000, December 1,$2,070,000. The building was completed in February 2026. Additional information is provided as follows