Check my work On January 1, 2024, the Mason Manufacturing Company began construction of a building...
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Check my work On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 March 1, 2024 June 30, 2024 October 1, 2024 $ 1,230,000 720,000 380,000 670,000 January 31, 2025 April 30, 2025 990,000 1,305,000 2,340,000 August 31, 2025 On January 1, 2024, the company obtained a $3 million construction loan with a 12% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2024 and 2025. The company's other interest-bearing debt included two long-term notes of $5,600,000 and $7,600,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2024 and 2025. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: Using the weighted-average interest method, answer the following questions: 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the weighted-average method. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will appear in the 2024 and 2025 income statements. Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the weighted-average method. 3. Calculate the amount of interest expense that will appear in the 2024 and 2025 income statements. Note: Round "Weighted-average rate of all debt" to 2 decimal places but do not round other intermediate calculations. Enter your answers in dollars rounded to the nearest whole number. 1. Interest capitalized 3. Interest expense 2024 2025 Show less & Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 What is the total cost of the building? Note: Round "Weighted-average rate of all debt" to 2 decimal places but do not round other intermediate calculations. Enter your answers in dollars rounded to the nearest whole number. Total cost of building Check my work On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 March 1, 2024 June 30, 2024 October 1, 2024 $ 1,230,000 720,000 380,000 670,000 January 31, 2025 April 30, 2025 990,000 1,305,000 2,340,000 August 31, 2025 On January 1, 2024, the company obtained a $3 million construction loan with a 12% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2024 and 2025. The company's other interest-bearing debt included two long-term notes of $5,600,000 and $7,600,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2024 and 2025. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: Using the weighted-average interest method, answer the following questions: 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the weighted-average method. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will appear in the 2024 and 2025 income statements. Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the weighted-average method. 3. Calculate the amount of interest expense that will appear in the 2024 and 2025 income statements. Note: Round "Weighted-average rate of all debt" to 2 decimal places but do not round other intermediate calculations. Enter your answers in dollars rounded to the nearest whole number. 1. Interest capitalized 3. Interest expense 2024 2025 Show less & Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 What is the total cost of the building? Note: Round "Weighted-average rate of all debt" to 2 decimal places but do not round other intermediate calculations. Enter your answers in dollars rounded to the nearest whole number. Total cost of building
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