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 $$3$ million construction loan with a $11\%$ interest rate. Assume the $$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 $$4,200,000$ and $$6,200,000$ 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 $31.$

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.

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