E10-7 (Capitalization of Interest) McPhersonFurniture Company started constructi

E10-7 (Capitalization of Interest) McPhersonFurniture Company started construction of a combination office andwarehouse building for its own use at an estimated cost of$5000000 on January 1 2012. McPherson expected to complete thebuilding by December 31 2012. McPherson has the following debtobligations outstanding during the construction period.