On January 1, 2021, the Mason Manufacturing Company began consuruction of a building to be used as its office headquarters. The building was completed on September 30,2022 Expenditures on the project were as follows: On January 1,2021, the company obtoined o $4.900,000 construction loon with a 12% interest rate. The loan was outstanding all of 2021 and 2022 . The company's other interest-bearing debt included two long-term notes of $2,000,000 and $8,000,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2021 and 2022 Interest is paid annually on oll debt. The company's fiscal year-end is December 31 . Required: 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 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 2021 and 2022 income statements