Problem $10-10($Algo$)$ Interest capitalization; weighted$-$average 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 $30,2025.$ Expenditures on the project were as follows: January $1,2024$ $ $1,250,000$ March $1,2024690,000$ June $30,2024430,000$ October $1,2024630,000$ January $31,2025405,000$ April $30,2025720,000$ August $31,20251,170,000$ On January $1,2024,$ the company obtained a $$3$ million construction loan with a $10\%$ interest rate. Assume the $$3$ million loan is not specifically tied to construction of the building. The loan was outstanding all of $2024$ and $2025.$ The company$$s other interest$-$bearing debt included two long$-$term notes of $$4,300,000$ and $$6,300,000$ with interest rates of $4\%$ and $9\%,$ respectively. Both notes were outstanding during all of $2024$ and $2025.$ Interest is paid annually on all debt. The company$$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.Problem $10-10($Algo$)$ Interest capitalization; weighted$-$average 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 $30,2025.$ Expenditures on the project were as follows: January $1,2024$ $ $1,250,000$ March $1,2024690,000$ June $30,2024430,000$ October $1,2024630,000$ January $31,2025405,000$ April $30,2025720,000$ August $31,20251,170,000$ On January $1,2024,$ the company obtained a $$3$ million construction loan with a $10\%$ interest rate. Assume the $$3$ million loan is not specifically tied to construction of the building. The loan was outstanding all of $2024$ and $2025.$ The company$$s other interest$-$bearing debt included two long$-$term notes of $$4,300,000$ and $$6,300,000$ with interest rates of $4\%$ and $9\%,$ respectively. Both notes were outstanding during all of $2024$ and $2025.$ Interest is paid annually on all debt. The company$$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.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 $$4,400,000$ construction loan with a $14\%$ interest rate. The loan was outstanding all of

$2024$ and $2025.$ The company's other interest$-$bearing debt included two long$-$term notes of $$2,000,000$ and $$8,000,000$ with interest

rates of $10\%$ and $12\%,$ 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:

Calculate the amount of interest that Mason should capitalize in $2024$ and $2025$ using the specific interest 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.