Connect HW7 Submitted 1.6/4 1 points awarded Scored eBook Print References 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 January 31, 2025 April 30, 2025 August 31, 2025 $ 1,310,000 1,020,000 1,220,000 1,020,000 333,000 666,000 963,000 On January 1, 2024, the company obtained a $3,700,000 construction loan with a 12% interest rate. The loan was outstanding all of 2024 and 2025. 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 2024 and 2025. 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 2024 and 2025 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 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 specific interest method. 3. Calculate the amount of interest expense that will appear in the 2024 and 2025 income statements. Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations. 2024 2025 1. Interest capitalized $ 3. Interest expense 363,000 $ $ 1,021,000 $ 625,938 758,062 9.37/20 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: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations. Total cost of building $ 7,520,938