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 $$310,000$ immediately and signing a noninterest$-$bearing note requiring the

company to pay $$710,000$ 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 $$31,000$ were paid at closing.

At the end of April, the old building was demolished at a cost of $$81,000,$ and an additional $$61,000$ 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 $$5,000,000$ at $8\%$ on May $1$ to help finance construction. This loan, plus interest, will be paid in

The company also had a $$6,350,000,8\%$ long$-$term note payable outstanding throughout $2024.$

In November, the company purchased $10$ identical pieces of equipment and office furniture and fixtures for a lump$-$sum

price of $$710,000.$ The fair values of the equipment and the furniture and fixtures were $$567,000$ and $$243,000,$

respectively. In December, San Antonio paid a contractor $$340,000$ for the construction of parking lots and for

landscaping.

Required:

Determine the initial 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 building

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 building.

This means the interest capitalization period begins on March $28.)$

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 $$1$ and $PVA{D}_{?}$ of $$1)$

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 $2024.$ The company uses the specific interest method to determine the amount of

interest capitalized on the building 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 building. This

means the interest capitalization period begins on March $28.)$

Note: Do not round intermediate calculations. Round your final answers to the nearest

whole dollar.