Check my work Problem 10-10 Interest capitalization; weighted-average method [LO10-7) On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows January 1, 2018 March 1, 2018 June 30, 2018 October 1, 2018 January 31, 2019 April 30, 2019 August 31, 2019 $1,250,000 690,000 430,000 630,000 05,000 720,000 1,170,000 On January 1, 2018, the company obtained a $3 million construction loan with a 10% interest rate. The loan was outstanding all of 2018 and 2019. The company's other interest-bearing debt included two long-term notes of $4,300,000 and $6,300,000 with interest rates of 4% and 9%, respectively. Both notes were outstanding during all of 2018 and 2019, 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 2018 and 2019 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 2018 and 2019 income statements. Prex 9 of 16 Next>