Ivanhoe Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $6,000,000 on January 1, 2020. Ivanhoe expected to complete the building by December 31, 2020. Ivanhoe has the following debt obligations outstanding during the construction period.

Construction loan-12% interest, payable semiannually, issued December 31, 2019$2,400,000Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 20211,800,000Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 20241,200,000