On January 1, 2013, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2014.

Expenditures on the project were as follows:

January 1, 2013- $1,200,000

March 1, 2013- $690,000

June 30, 2013- $450,000

October 1, 2013- $660,000

January 31, 2014- $945,000

April 30, 2014- $1,260,000

August 31, 2014- $2,250,000

On January 1, 2013, the company obtained a $3 million construction loan with a 12% interest rate. The loan was outstanding all of 2013 and 2014. The company