23 On January 1, 2021, the Mason Manufacturing Company began construction of a building i as follows 25 points used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project w January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 $1,820,000 1,440,000 1,640,000 1.440,000 39,000 729,000 1,020.000 On January 1, 2021, the company obtained a $4,400,000 construction loan with a 14% interest rate. The loan was outstanding all of 2001 and 2022. The company's other interest bearing debt included two long-term notes of $2,000,000 and $8,000,000 with interest rates of 10% and 12%, respectively. Both notes were outstanding during all of 2001 and 2022 Interest is paid annually on at debt. The company's fiscal year-end is December 31, (Do not round intermediate calculations.) Required 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific interest method. Also, calculate the amount of interest expense that will appear in the 2021 and 2022 income statements Interest Capitalized Interest Expense 2. What is the total cost of the building? 2021 2022 Question 23 25 points Save On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022 Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 $1,820,000 1,440,000 1,040,000 1,440,000 396,000 729,000 1,026,000 On January 1, 2021, the company obtained a $4,400,000 construction loan with a 14% interest rate. The loan was outstanding all of 2021 and 2022. The company's other interest-bearing debt included two long-l December 31 notes of $2,000,000 and $8,000,000 with interest rates of 10% and 12%, respectively. Both notes were outstanding during all of 2021 and 2022 interest is paid annually on all debt. The company's fiscal year-end is (Do not round intermediate calculations) Required: statements 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the specific interest method. Also, calculate the amount of interest expense that will appear in the 2021 and 2022 income Interest Capitalized Interest Expense 2. What is the total cost of the building? 2021 504000 2022