mason manufacturing act1

On January 1,2024, the Mason Manufacturing Company began construction of a bullding to be used as its offlce headquarters. The building was completed on September 30,2025 . Expenditures on the project were as follows 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 pald ennually 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 specifc interest method. 2. What is the total cost of the buliding? 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. 1. Calculete the amount of interest that Meson should capltalize in 2024 and 2025 using the specinc interest method. 3. Csiculete the amount of interest expense that wil sppeor in the 2024 and 2025 income stetements. Note: Enter your answers in whole dofiars and not in millions. Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. What is the total cost of the bullding? Note: Enter your answers in whole doliars and not in mill ons; Do not round intermediate calculations