rropiem IU-IU (AIgo) interest capitaization; weigntea-average metnoa [LUIU-I] On January 1, 2021, the company obtained a $3 milion loan with a 11% interest rate. The building was completed on September 30 . 2022. Expenditures on the project were as follows. On January 1, 2021, the company obtained a $3 milion construction loan with a 11% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The foan was outstanding all of 2021 and 2022 . The company's other interest-bearing debt included two long-term notes of $5,100,000 and $7,100,000 with interest rates of 7% and 9% respectively. Both notes were outstanding duting all of 2021 and 2022 . interest is paid annually on all debt. The company's fiscal year-end is December 31 Required: 1. Caiculate the amount of interest that Mason should capitalize in 2021 and 2022 using the weighted-average method. 2. What is the total cost of the bulding? 3. Calculate the amount of interest expense that will appear in the 2021 and 2022 income statements Answer is not complete. Complete this question by entering your answers in the tabs below. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the weighted-average method and interest expense that will appear in the 2021 and 2022 income statements. "Round "Welghted-average nate of all debt" to 2 dedmal places trut do not round other intermediate calculations. Round your answens to the nearest whole dollar.) On January 1, 2021, the company obtained a $3 milion loan with a. 11\% interest rate. The building was completed on September 30 . 2022. Expenditures on the project were as follows: On January 1, 2021, the company obtained a $3 million construction loan with a 11% interest rate. Assume the $3 million loan is not specifically tied to construction of the bulding. The loan was outstanding all of 2021 and 2022 . The company's other interest-bearing debt included two long-term notes of $5,100,000 and $7,100,000 with interest rates of 7% and 9%, respectively, Both notes were outstanding during all of 2021 and 2022 . Interest is paid annually on all 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 weighted-average 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. Answer is not complete. Complete this question by entering your answers in the tabs below. What is the total cost of the building? ("Round "Weighted-avernge rate of all dobt" to 2 decimal places but do not round other intermodiate calculations. Round your answer to the nearest whole dollar.)
