Problem 10-9 Interest capitalization; specific interest method [LO10-7]

On January 1, 2016, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2017.

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value 2.00 points Problem 10-9 interest capitalization; specific interest method LO10-71 On January 1, 2016, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2017 Expenditures on the project were as follows January 1, 2016 $1,710,000 1,320,000 March 1, 2016 1,520,000 June 30, 2016 October 1, 2016 1,320,000 January 31, 2017 378.000 April 30, 2017 711,000 August 31, 2017 1,008,000 On January 1, 2016, the company obtained a $4,200,000 construction loan with a 16% interest rate. The loan was outstanding all of 2016 and 2017. The company's other interest-bearing debt included two long- term notes of $4,000,000 and $6,000,000 with interest rates of 12% and 14%, respectively. Both notes were outstanding during all of 2016 and 2017. Interest is paid annually on all debt. The company's fiscal year-end is December 31