$10$

January $1,2024$

March $1,2024$

June $30,2024$

October $1,2024$

January $31,2025$

$5$

April $30,2025$

olnts

August $31,2025$

$$1,260,000$

$750,000$

$310,000$

$680,000$

$1,035,000$

$1,350,000$

$2,430,000$

Skipped

On January $1,2024,$ 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 building. The loan was outstanding all of $2024$ and $2025.$ The company's other interest$-$bearing debt included two long$-$term notes of $$5,700,000$ and $$7,700,000$ with interest rates of $5\%$ and $7\%,$ 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:

References

Calculate the amount of interest that Mason should capitalize in $2024$ and $2025$ using the weighted$-$average method.

What is the total cost of the building?

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.

Req $1$ and $3$

Req $2$

Calculate the amount of interest that Mason should capitalize in $2024$ and $2025$ using the weighted$-$average method.

Calculate the amount of interest expense that will appear in the $2024$ and $2025$ income statements.

Note: Round "Weighted$-$average rate of all debt" to $2$ decimal places but do not round other intermediate calculations. Enter your answers in dollars rounded to the nearest whole number.

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$\backslash$table$[[,2024,2025],[1.$ Interest capitalized,,$],[3.$ Interest expense,,$]]$