On December 31, 2011, Hurston Inc. borrowed $3,960,000 at 13% payable annually to finance the construction of a new building.

On December 31, 2011, Hurston Inc. borrowed $3,960,000 at 13% payable annually to finance the construction of a new building. In 2012, the company made the following expenditures related to this building: March 1, $475,200; June 1, $792,000; July 1, $1,980,000; December 1, $1,584,000. Additional information is provided as follows.1.

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