Kingbird Industries Inc. started construction of a manufacturing facility for its own use at an estimated cost of $9,600,000 on January 1, 2017. Kingbird expected to complete the building by December 31, 2017. Kingbird's debt, all of which was outstanding during the construction period, was as follows. Construction loan-11% interest, payable semiannually, issued December 31, 2016; $4,800,000 Long-term loan #1 - 10% interest, payable on January 1 of each year. Principal payable on January 1, 2019; $1,440,000 Long-term loan #2-12% interest, payable on December 31 of each year. Principal payable on December 31, 2025; $3,360,000