This is a variation of the previous problem, modified to focus on the weighted-average interest method.]
Required:
Refer to the facts in Problem 10-9 and answer the following questions:
1. Calculate the amount of interest that Mason should capitalize in 2011 and 2012 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 2011 and 2012 income statements.