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On January 1, 2011, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on
On January 1, 2011, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2012 Expenditures on the project were as follows: January 1, 2011 $1,000,000 March 1, 2011 June 30, 2011 October 1,2011 January 31, 2012270,000 Apeil 30, 2012 August 31, 2012900,000 600,000 585,000 On January 1,2011, the company obtained a $3 million construction loan with a 10% interest rate. The loan was outstanding all of 2011 and 2012. The company's other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 6% and 8% respectively. Both notes were outstanding during all of 2011 and 2012. Interest is paid annually on all debt. The company's fiscal year-end is December 31 Required Calculate the amount of interest that Mason should capitalize in 2011 and 2012 using the weighted-average method. (Enter your answers in dollars not in millions. Round the Weighted-average rate to two decimal places (e.g. 12.34%) for calculation purposes. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) Interest capitalized s 300000 2What is the total cost of the building? (Enter your answer in dollars not in millions. Round the Weighted-average rate to two decimal places (eg. 12.34%) for calculation purposes. Round your final answer to the nearest dollar amount. Omit the "$" sign in your response.) Calculate the amount of interest expense that will appear irn the 2011 and 2012 income statements. (Enter your answers in dollars not in millions. Round the Weighted-average rate to two decimal places (e.g. 12.34%) for calculation purposes. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) Interest expense
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