P $10-9$ Interest capitalization; specific interest method LO$10-7$ 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 $30,2025.$ Expenditure on the project were as follows: January $1,2024$ $$1,000,000$ March $1,2024$ June $30,2024$ October $1,2024$ January $31,2025270,000$ April $30,2025585,000$ August $31,2025$ On January $1,2024,$ the company obtained a $$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 $31.$ Required: $1.$ Calculate the amount of interest that Mason should capitalize in $2024$ and $2025$ using the specific interest method. $2.$ What is the total cost of the building? $3.$ Calculate the amount of interest expense that will appear in the $2024$ and $2025$ income