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Problem 10-9 (Static) Interest capitalization; specific interest method [LO10-7] 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: On January 1, 2024, the company obtained a $3 million construction loan with a 10% interest rate. The loan was outstanding all of 2024 and 2025. The company's other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 6% and 8%, 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: 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the specific interest method. 2. What is the total cost of the bullding? 3. Calculate the amount of interest expense that will appear in the 2024 and 2025 income statements. Complete this question by entering your answers in the tabs below. 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the specific interele method. 3. Calculate the amount of interest expense that will appear in the 2024 and 2025 income statements. Note: Do not round intermediate calculations. Enter your answers in whole doliars and not in millions