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On January 1, 2024, the Mason Manufacturing Company began construction of a butiding to be used as its office headquarters. The buliding was completed on September 30,2025 . Expenditures on the project were as follows. On January 1,2024 , the company obtained a $3 milition construction loan with a 12% interest rate. Assume the $3 milition ioan is not specifically tled to construction of the builing The loan was outstanding all of 2024 and 2025 . The companys other interest-bearing debt included two long-term notes or $5,500,000 and $7,500,000 with interest rates of 7% and 9%, respectuvely Both notes were outstanding during all of 2024 and 2025 , Interest is paid annualiy on ali debt. The companys fiscal year-end is December 31 . Required: Using the weighted-average interest method, answer the following questions: 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the weighted-average 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 statements: Complete this question by entering your answers in the tabs below. What is the total cost of the building? Fote: Round "Weighted-average rate of all debt" to 2 decimal places but do not round other intermediate calculations. Enter vour answers in dollars rounded to the nearest whole number

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