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On-Jenuary 1, 2018, the Mason Menufocturing Compary begen construction of a building to be ued ss ts oce building was completed on September 30, 2019

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On-Jenuary 1, 2018, the Mason Menufocturing Compary begen construction of a building to be ued ss ts oce building was completed on September 30, 2019 The Expenditures on the project were as follows: January 1 2018 Harch A 2018 Tune 30 2018 october 1. 2018 January 312019 Apri1 30. 2019 August 31 2019 $1,850,000 1,500 000 1,700,000 1.500,000 405,000 738,000 1,035,000 On January 1, 2018, the company obtained a $4,500,000 construction loan with a 12% interest rate. The loan was outstanding al af 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 debt The company's fiscal year-end is December 31. Required: 1. Caiculate 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. Complete this question by entering your answers in the tabs below Reg and 3 Rec 2 Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specihic Interest method and interest expense that will appear in the 2018 and 2019 income statements. CEnter yourianswers in doilars expern

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