Nash Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,600,000 on January 1, 2021. Nash expected to complete the building by December 31, 2021. Nash has the following debt obligations outstanding during the construction period.

Construction loan10% interest, payable semi-annually, issued December 31, 2020, maturity on December 31, 2030		$2,096,000
Short-term loan8% interest, payable monthly, and principal payable at maturity on May 30, 2022		1,422,000
Long-term loan9% interest, payable on January 1 of each year. Principal payable on January 1, 2025		1,021,000