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Expenditures on the project were as follows: Janu March 1, 2018 June 30, 2018 1, 2018 $1,260,000 750,000 310,000 680,000 1,035,000 1,350,000 2,430,000 January 31,
Expenditures on the project were as follows: Janu March 1, 2018 June 30, 2018 1, 2018 $1,260,000 750,000 310,000 680,000 1,035,000 1,350,000 2,430,000 January 31, 2019 April 30, 2019 August 31, 2019 On January 1, 2018, the company obtained a $3 million construction loan with a 11% interest rate. The loan was outstanding all of 2018 and 2019. The company's other interest-bearing debt included two long-term notes of $5,700,000 and $7,700,000 with interest rates of 5% and 7% 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 weighted-average 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 amount of interest that Mason should capitalize in 2018 and 2019 using the weighted-average method and interest expense that will appear in the 2018 and 2019 income statements. (Do not round your int Round your answers to the nearest whole dollar.) te calculations. 2018 2019 Req 2
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