On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 March 1, 2024 June 30, 2024 $ 1,140,000 960,000 180,000 October 1, 2024 720,000 January 31, 2025 810,000 April 30, 2025 1,125,000 August 31, 2025 1,980,000 On January 1, 2024, the company obtained a $3 million construction loan with a 12% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2024 and 2025. The company's other interest-bearing debt included two long-term notes of $5,200,000 and $7,200,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2024 and 2025. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: Using the weighted-average interest method, answer the following questions: 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the weighted-average method. 2. What is the total cost of the building? 3. Calculate the amount of interest expense that will appear in the 2024 and 2025 income statements. On March 31, 2024, Susquehanna Insurance purchased an office building for $14,700,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,290,000 and $790,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Required: Service Life 25 20 Residual Value 5% of cost 5% of cost 10 $ 39,000 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate depreciation for the years ended December 31, 2024 and 2025. Note: Do not round intermediate calculations. Building Furniture and fixtures Office equipment Depreciation 2024 2025 On March 31, 2024, Susquehanna Insurance purchased an office building for $14,700,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,290,000 and $790,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures office equipment bes Required: Service Life 25 Residual Value 5% of cost 20 5% of cost 10 $ 39,000 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What book values would be reported in the December 31, 2025, balance sheet (including land)? Land Book values on December 31, 2025 Building Furniture and fixtures Tffice enuinment