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 $$200,000$ immediately and signing a noninterest$-$bearing note requiring the company to pay $$600,000$ 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 $$20,000$ were paid at closing.At the end of April, the old building was demolished at a cost of $$70,000,$ and an additional $$50,000$ was paid to clear and grade the land. Construction of a new building began on May $1$ and was completed on October $29.$ Construction expenditures were as follows:May $1$$ $1,200,000$July $301,500,000$September $1900,000$October $11,800,000$San Antonio borrowed $$3,000,000$ at $8\%$ on May $1$ to help finance construction. This loan, plus interest, will be paid in $2025.$ The company also had a $$5,250,000,8\%$ 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 $$600,000.$ The fair values of the equipment and the furniture and fixtures were $$455,000$ and $$245,000,$ respectively. In December, San Antonio paid a contractor $$285,000$ for the construction of parking lots and for landscaping.Required:$1$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 $28.)2$How much interest expense will San Antonio report in its $2024$ income statement?Note: Use tables, Excel, or a financial calculator.