On March 5, 2026, you were hired by Larkspur Inc., a closely held company, as a staff member of its newly created internal auditing department. While reviewing the company's records for 2024 and 2025, you discover that no adjustments have yet been made for the following items. Items 1. 2. 3. 4. Interest income of $13,400 was not accrued at the end of 2024. It was recorded when received in February 2025. A computer costing $3,680 was expensed when purchased on July 1, 2024. It is expected to have a 4-year life with no salvage value. The company typically uses straight-line depreciation for all fixed assets. Research and development costs of $34,200 were incurred early in 2024. They were capitalized and were to be amortized over a 3-year period. Amortization of $11,400 was recorded for 2024 and $11.400 for 2025. On January 2, 2024, Larkspur leased a building for 5 years at a monthly rental of $8.800. On that date, the company paid the following amounts, which were expensed when paid. Security deposit $21,100 First month's rent 8,800 Last month's rent 8,800