On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,700,000 at 7% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: $7,000,000, 12% bonds $3,000,000, 7% long-term note Construction expenditures incurred during 2021 were as follows: January 1 $ 740,000 March 31 1,340,000 June 30 968,000 September 30 740,000 December 31 540,000