$12$

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:

$5$ points

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Required:

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

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

Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations.

$\backslash$table$[[,2024,2025],[1.$ Interest capitalized,$$,540,000,$$$,540,000],[3.$ Interest expense,$$,1,380,000,$$$,1,380,000$