Landshark Corp. uses GAAP for financial reporting. The company borrows $130 million from a
local bank to finance the construction of a manufacturing plant. The annual interest rate is 9.5%,
the term is 3 years, and the company pays only the interest expense during the two-year
construction period. However, the company earns $5 million by temporarily investing the loan
proceeds. What is the amount of capitalized interest that will be reported on Landshark's balance
sheet?