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On January 1 , 2 0 2 4 , the Mason Manufacturing Company began construction of a building to be used as its office headquarters.
On January the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The
building was completed on September Expenditures on the project were as follows:
On January the company obtained a $ million construction loan with a interest rate. Assume the $ million loan is not
specifically tied to construction of the building. The loan was outstanding all of and The company's other interestbearing
debt included two longterm notes of $ and $ with interest rates of and respectively. Both notes were
outstanding during all of and Interest is paid annually on all debt. The company's fiscal yearend is December
Required:
Using the weightedaverage interest method, answer the following questions:
Calculate the amount of interest that Mason should capitalize in and using the weightedaverage method.
What is the total cost of the building?
Calculate the amount of interest expense that will appear in the and income statements.
Complete this question by entering your answers in the tabs below.
Req and
Calculate the amount of interest that Mason should capitalize in and using the weightedaverage method.
Calculate the amount of interest expense that will appear in the and income statements.
Note: Round "Weightedaverage rate of all debt" to decimal places but do not round other intermediate calculations. Enter
your answers in dollars rounded to the nearest whole number.
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