On January the company obtained a $ construction loan with a interest rate. The loan was outstanding all of
and The company's other interestbearing debt included two longterm notes of $ and $ with interest
rates of and respectively. Both notes were outstanding during all of and Interest is paid annually on all debt. The
company's fiscal yearend is December
Required:
Calculate the amount of interest that Mason should capitalize in and using the specific interest method.
What is the total cost of the building?
Calculate the amount of interest expense that will appear in the and income statements.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Calculate the amount of interest that Mason should capitalize in and using the specific interest method.
Calculate the amount of interest expense that will appear in the and income statements.
Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations.
