# On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as i

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.

Expenditures on the project were as follows:
January 1, 2018 \$ 1,710,000   March 1, 2018   1,320,000   June 30, 2018   1,520,000   October 1, 2018   1,320,000   January 31, 2019   378,000   April 30, 2019   711,000   August 31, 2019   1,008,000

On January 1, 2018, the company obtained a \$4,200,000 construction loan with a 16% 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 12% and 14%, 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.

Required:
1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 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 2018 and 2019 income statements.

I&#39;m having a hard time calculating the interest capitalize 2019

expenditures \$7,337,000 but it is incorrect

weighted average rate for all other debt is 13.20%