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Early in its fiscal year ending December 31,2024 . San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased by paying $370,000 immediately and signing a noninterest-bearing note requiring the company to pay $770,000 on March 28, 2026. An interest rate of 8% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $37,000 were paid at closing. At the end of April, the old bullding was demolished at a cost of $87,000, and an additional $67,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows: San Antonio borrowed $6,100,000 at 8% on May 1 to help finance construction. This loan, plus interest, will be paid in 2025. The company also had a $6,950,000,8% long-term note payable outstanding throughout 2024 . In Novembec, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $770,000. The fair values of the equipment and the furniture and fixtures were $522,000 and $348,000, respectively. In December, San Antonio paid a contractor $370,000 for the construction of parking lots and for landscaping. Required: 1. Determine the inital values of the various assets that San Antonio acquired or constructed during 2024. The company uses the specific interest method to determine the amount of interest capitalized on the bullding construction. (Hint: Expenditures on March 28 and April 30 to acquire land on which to construct the building are included as part of accumulated expenditures for determining the amount of interest capitalized on the buliding. This means the interest capitalization period begins on March 28.) 2. How much interest expense will San Antonio report in its 2024 income statement? Note: Use tables, Excel, or a financial calculator. (EV of S1, PV of S1. EVA of S1, PVA of S1. EVAD of S1 and PVAD of S1) Complete this question by entering vour answers in the tabs below. Required: 1. Determine the initial values of the various assets that San Antonio acquired or const the specific interest method to determine the amount of interest capitalized on the b on March 28 and April 30 to acquire land on which to construct the building are inclu expenditures for determining the amount of interest capitalized on the building. This begins on March 28.) 2. How much interest expense will San Antonio report in its 2024 income statement? Note: Use tables, Excel, or a financial calculator. (FV of \$1, PV of \$1, FVA of \$1, PVA of \$1, Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Determine the initial values of the various assets that San Antonio acquired or constructed during the specific interest method to determine the amount of interest capitalized on the building const on March 28 and April 30 to acquire land on which to construct the building are included as part for determining the amount of interest capitalized on the building. This means the interest capital March 28.) Note: Do not round intermediate calculations. Round your final answers to the nearest whole doll october 1 San Antonio borrowed $6,100,000 at 8% on May 1 to help finance construction. This loan, plus interest, w company also had a $6,950,000,8% long-term note payable outstanding throughout 2024. In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures fo $770,000. The fair values of the equipment and the furniture and fixtures were $522,000 and $348,000, December, San Antonio paid a contractor $370,000 for the construction of parking lots and for landscapir Required: 1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2C the specific interest method to determine the amount of interest capitalized on the building construc on March 28 and April 30 to acquire land on which to construct the building are included as part of expenditures for determining the amount of interest capitalized on the building. This means the inter begins on March 28 , 2. How much interest expense will San Antonio report in its 2024 income statement? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. How much interest expense will San Antonio report in its 2024 income statement? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar

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