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

buliding was completed on September $30,2025.$ Expenditures on the project were as follows:

On January $1,2024,$ the company obtained a $$4,300,000$ 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 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 bullding?

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

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

Req $1$ and $3$

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.

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

What is the total cost of the building?

Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations.