Question
On July 31, 2020,MarigoldCompany engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction begun immediately and was completed on November 1,
On July 31, 2020,MarigoldCompany engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction begun immediately and was completed on November 1, 2020. To help finance construction, on July 31Marigoldissued a $270,000,3-year,12% note payable at Netherlands National Bank, on which interest is payable each July 31. $175,000of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at10% until November 1. On November 1,Marigoldmade a final $95,000payment to Minsk. Other than the note to Netherlands,Marigold's only outstanding liability at December 31, 2020, is a $31,000,8%,6-year note payable, dated January 1, 2017, on which interest is payable each December 31.
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