On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019.

Expenditures on the project were as follows:

January 1, 2018$1,850,000March 1, 20181,500,000June 30, 20181,700,000October 1, 20181,500,000January 31, 2019405,000April 30, 2019738,000August 31, 20191,035,000

On January 1, 2018, the company obtained a $4,500,000 construction loan with a 12% interest rate. The loan was outstanding all of 2018 and 2019. The company's other interest-bearing debt included two long-term notes of $6,000,000 and $9,000,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company's fiscal year-end is December 31.

Required:

3.Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements.