Question
On July 31, 2012, Bismarck Company engaged Duval Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on
On July 31, 2012, Bismarck Company engaged Duval Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2012. To help finance construction, on July 31 Bismarck issued a $590,400, 3-year, 10% note payable at Wellington National Bank, on which interest is payable each July 31. $471,400 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 (debt investments) at 8% until November 1. On November 1, Bismarck made a final $119,000 payment to Duval. Other than the note to Wellington, Bismarck
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