On March 1, 2020, Sarasota Company purchased land for an office site by paying $2,500,000 cash. Hub Corp began construction on the office building on March 1, 2030. The following expenditures were incurred for construction:

The office was completed and ready for occupancy on November 1, 2019. (Construction period was March 1 October 31, which is eight months.)To help pay for construction $3,600,000 was borrowed on March 1 on a 9%, 3 year-note payable. Other than the construction note, the only debt outstanding during 2020 was a $1,500,000, 12%, 6-year note payable dated January 1, 2020.

Date Expenditures 3/1/20 $1,800,000 6/1/20 $2,520,000 8/1/20 $4,500,000 10/31/20 $4,800,000