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Right click on the upright layer and duplicate.

Rename this layer cross board.

Image > Rotate > these settings:
Direction right
Degrees 90
All Layers UNchecked

Image > Resize > 85% of original, all layers UNchecked.

(Click for larger image.)

Layers > Arrange > Move Down.

Use your mover tool and place the cross board.

(Click for larger image.)

Now we want to make the cut out.

Image > Zoom in by 1.
(You may want to do this again.)

Set your selection tool at rectangle, feather 0, and antialias UNchecked.

Now draw out a rectangle where you what the cut out.

You want it as tall as the cross board and about halfway into the "side" of the upright.

Make sure the upright layer is active then hit your delete key.

(I lowered the opacity of the cross board so it was easier to see the cut out.)

Turn off your background color in your Styles box and you should still have your foreground set to brown.

Add a new layer and name it shadow.

With your air brush tool set at:
Shape Horizontal
Size 5
Hardness 5
Opacity 100
Step 1
Density 100

Draw in a shadow for the cut out.

(Again opacity lowered for better view.)

Effects > Blur > Gaussian Blur > 2.00 > Ok.

Colors > Adjust > Brightness/Contrast > same settings.

Activate the upright layer.

Effects > 3D Effects > Drop Shadow > these settings:
Vertical &Horizontal 1
Opacity 54
Blur 1.2
Color black or dark brown

(Click for larger image.)

Layers > Merge > Merge Visible.

Rename this layer post.

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