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:

January 1, 2016	$	1,000,000
March 1, 2016		800,000
June 30, 2016		1,500,000
October 1, 2016		1,000,000
January 31, 2017		300,000
April 30, 2017		600,000
August 31, 2017		900,000

On January 1, 2016, the company obtained a $8.000,000 construction loan with a 12% interest rate. The loan was outstanding all of 2016 and 2017. The companys fiscal year-end is December 31.

1. Calculate the amount of interest capitalized for 2016 and 2017.
2. What is the total cost of the building?

Date	Expenditure		Weight		Average
Accumulated expenditure

	Average		Interest Rate			Capitalized Interest
Average accumulated expenditures		x	%	X /12	=

Date	Expenditure		Weight		Average
January 1, 2017 (incurred in 2016+ capitalized Interest for 2016)		x		=
Accumulated expenditure