On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. T building was completed on September 30, 2019. Expenditures on the project were as follows: anuary 1, 2018 $1,680,000 March 1, 2018 June 30, 2018 October 1, 2018 January 31, 2019 April 3e, 2019 August 31, 2019 1,260,e08 1,46e,eee 1,26e,ee0 369,8e0 702,000 999,000 On January 1, 2018, the company obtained a $4,000,000 construction loan with a 12% interest rate. The loan was outstanding all 2018 and 2019. The company's other interest-bearing debt included two long-term notes of $3,000,000 and $7,000,000 with int rates of 8% and 10%, respectively. Both notes were outstanding during all of 2018 and 2019, Interest is paid annually on all debt company's fiscal year-end is December 31 Required 1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements. 8 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 3Req 2 Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method and interest expense that will appear in the 2018 and 2019 income statements. (Enter your answers in dollars.) 2018 2019 Interest capitalized Interest expenseS 9 S 453,000 450,381 967,000 On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. T building was completed on September 30, 2019. Expenditures on the project were as follows: anuary 1, 2018 $1,680,000 March 1, 2018 June 30, 2018 October 1, 2018 January 31, 2019 April 3e, 2019 August 31, 2019 1,260,e08 1,46e,eee 1,26e,ee0 369,8e0 702,000 999,000 On January 1, 2018, the company obtained a $4,000,000 construction loan with a 12% interest rate. The loan was outstanding all 2018 and 2019. The company's other interest-bearing debt included two long-term notes of $3,000,000 and $7,000,000 with int rates of 8% and 10%, respectively. Both notes were outstanding during all of 2018 and 2019, Interest is paid annually on all debt company's fiscal year-end is December 31 Required 1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements. 8 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 3Req 2 Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method and interest expense that will appear in the 2018 and 2019 income statements. (Enter your answers in dollars.) 2018 2019 Interest capitalized Interest expenseS 9 S 453,000 450,381 967,000
