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 $31.$

Compute the amount of interest that Mason should capitalize in $2025.$ Show your

computations in the workpaper provided.

Weighted Average

Accum.

Expenditures$-2025$

Weighted

Fraction

of

Year

Capitalized

Interest