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2019 are incorrect. Please revise with correct numbers. On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as
2019 are incorrect. Please revise with correct numbers.
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019 xpenditu res on the project were as follows: lanuary 1, 2018 March 1, 2018 June 30, 2018 October 1, 2018 lanuary 31, 2019 April 30, 2019 August 31, 2019 $1,200 000 900 000 1,100 000 900 000 315,000 648 000 945 000 On January 1, 2018?the company obtained a $3,500,000 construction loan with a 12% interest rate. The loan was outstanding all of 2018 and 2019. The company's other interest-bearing debt included two long-term notes of $3,000,000 and $7,000 000 with interest rates of 8% and 10% respectively. Both notes were outstanding during all of 2018 and 2019 Interest is paid annually on all debt. The company's fiscal year-end is December 31 Required: 1. Calculate the amount of Interest that Mason should capitalize in 2018 and 2019 using the specific Interest method. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements. Complete this question by entering your answers in the tabs below Req 1 and 3 Req 2 Calculate the armount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method and interest expernse that will appear in the 2018 and 2019 income staternents. (Enter your answers in dollars.) 2018 2019 327000$327.690 Intcrost capitalized Interest expense $ 1033,000?$ 1,032 310 Req 1 and 3 Req 2 >Step by Step Solution
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