On January $1,2024,$ the company obtained a $$3$ million construction loan with a $14\%$ interest rate. Assume the $$3$ million loan is not specifically tied to construction of the building. The loan was outstanding all of $2024$ and $2025.$ The company$$s other interest$-$bearing debt included two long$-$term notes of $$4,900,000$ and $$6,900,000$ with interest rates of $5\%$ and $7\%,$ respectively. Both notes were outstanding during all of $2024$ and $2025.$ Interest is paid annually on all debt. The company$$s fiscal year$-$end is December $31.$

Required:

Using the weighted$-$average interest method, answer the following questions:

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