Pharoah Inc. is building a new hockey arena at a cost of $$2,700,000.$ It received a down payment of $$540,000$ from local businesses to support the project, and now needs to borrow $$2,160,000$ to complete the project. It therefore decides to issue $$2,160,000$ of $10-$year, $10\mathrm{.}5\%$ bonds. These bonds were issued on January $1,2023,$ and pay interest annually on each January $1.$ The bonds yield $10\mathrm{.}5\%$ to the investor and have an effective interest rate to the issuer of $10\mathrm{.}40530\%.($There is an increased effective interest rate due to the capitalization of the bond issue costs.$)$ Any additional funds that are needed to complete the project will be obtained from local businesses. Pharoah paid and capitalized $$54,000$ in bond issuance costs related to the bond issue. Pharoah prepares financial statements in accordance with IFRS.