On January 1, 2016, the Edinger Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on December 31, 2016. Expenditures on the project were as follows: On January 3, 2016, the company obtained a $2 million construction loan with a 10% interest rate. The loan was outstanding for all of 2016. The company's other interest-bearing debt included a long-term note of $5,000,000 with an 8% interest rate, and bonds of $3,000,000 with an interest rate of 6%. Both debts were outstanding during all of 2016. The company's fiscal year end is December 31. Calculate the amount of interest that Edinger should capitalize in 2016 using the specific interest method. (Clearly show WAAE, Wt. Ave. Interest Rate) What is the total cost of the building to be capitalized? How will interest expense appear in the 2016 financial statements