WK 10 & 11 Homework Saved Help Save & Exit Submit Check my work On January 1, 20

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WK 10 & 11 Homework Saved Help Save & Exit Submit Check my work On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019 20 Expenditures on the project were as follows polnts January 1, 2018 March 1, 2018 June 30, 2018 October 1, 2018 January 31, 2019 April 30, 2019 August 31, 2019 $1,000,000 600,000 800,000 600,000 270,000 585,000 900,000 eBook Print On January 1, 2018, the company obtained a $3 million construction loan with a 10% interest rate. The loan was outstanding all of 2018 and 2019. 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 2018 and 2019. Interest is paid annually on all debt. The company's fiscal year-end is December 31. References Required 1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 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 2018 and 2019 income statements Complete this question by entering your answers in the tabs below Req 1 and 3 Req 2 Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the weighted-average method and interest expense that will appear in the 2018 and 2019 income statements. (Do not round your intermediate calculations Round your answers to the nearest whole dollar.) 2018 2019 Interest capitalized Interest expense Req 1 and 3 Req 2 > Mc Graw Next

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2018 2019 Interest capitalized 205000 280125 Interest Expense 95000 19875

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