mason man act2

On January 1,2024, the Mason Manufacturing Company began construction of a bulliding to be used as its office headquarters. The buliding was completed on September 30,2025 . Expenditures on the project were as folows: On January 1, 2024, the company obtained a $3 million construction loan with a 10% interest rate. Assume the $3million 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 $4,400,000 and $6,400,000 with interest rates of 8% and 10%, respectwely. Both notes wore 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 capitallze in 2024 and 2025 using the weighted-average method. 2. What is the total cost of the buliding? 3. Calculate the amount of interest expense that wil appear in the 2024 and 2025 income statements. Complete this question by entering your answers in the tabs below. 1. Calculete the amount of interest that Moson should capitalize in 2024 and 2025 using the weighted-average method. 3. Calculato the amount of interest expense that will appear in the 2024 and 2025 income stetements. Note: Round "Weighted-average rato of all debt" to 2 dedmal places but do not round other Intermediate calculations. Enter your answers in dollars rounded to the nsarest whol number. Complete this question by entering your answers in the tabs below. What is the total cost of the buliding? Note: Round "Welghted-average rate of all debt" to 2 decimal piaces but do not round other intermedate caiculotens, Enter your enswers in dollars rounded to the nearest whole number