On January 1, 2016, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2017. Expenditures on the project were as follows: On January 1, 2016, the company obtained a $3 million construction loan with a 12% interest rate. The loan was outstanding all of 2016 and 2017. The company's other interest-bearing debt included two long-term notes of $4, 100,000 and $6, 100,000 with interest rates of 5% and 7%, respectively. Both notes were outstanding during all of 2016 and 2017. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Assume the $3 million loan is not specifically tied to construction of the building. Required: Calculate the amount of interest that Mason should capitalize in 2016 and 2017 using the weighted-average method. What is the total cost of the building? Calculate the amount of interest expense that will appear in the 2016 and 2017 income statements