On January $1,2024,$ the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The

bullding was completed on September $30,2025.$ Expendltures on the project were as follows:

On January $1,2024,$ the company obtained a $$5,000,000$ construction loan with a $9\%$ Interest rate. The loan was outstanding all of

$2024$ and $2025.$ The company's other Interest$-$bearing debt Included two long$-$term notes of $$6,000,000$ and $$9,000,000$ with interest

rates of $5\%$ and $8\%,$ 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:

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?

Calculate the amount of Interest expense that will appear in the $2024$ and $2025$ income statements.

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Complete this question by entering your answers in the tabs below.

Calculate the amount of interest that Mason should capitalize in $2024$ and $2025$ using the specific interest method.

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.