On January $1,2024,$ the company obtained a $$4,200,000$ construction loan with a $16\%$ interest rate. The loan was outstanding all of

$2024$ and $2025.$ The company's other interest$-$bearing debt included two long$-$term notes of $$4,000,000$ and $$6,000,000$ with interest

rates of $12\%$ and $14\%,$ 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.

What is the total cost of the building?

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

Answer is complete but not entirely correct.

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.