Early in its fiscal year ending December 31, 2016, 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 for dollar 940,000. San Antonio paid dollar 270,000 and signed a noninterest bearing note requiring the company to pay the remaining dollar 670,000 on March 28, 2018. An interest rate of 6 percentage properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling dollar 27,000 were paid at closing. During April, the old building was demolished at a cost of dollar 77,000, and an additional dollar 57,000 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: (FV of dollar 1, PV of dollar 1, FVA of dollar 1, PVA of dollar 1, FVAD of dollar 1 and PVAD of dollar 1) (Use appropriate factor(s) from the tables provided.) San Antonio borrowed dollar 4, 100,000 at 6 percentage on May 1 to help finance construction. This loan, plus interest, will be paid in 2017. The company also had the following debt outstanding throughout 2016: dollar 2, 700,000, 9 percentage long-term note payable dollar 4, 700,000, 6 percentage long-term bonds payable In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of dollar 670,000. The fair values of the equipment and the furniture and fixtures were dollar 539,000 and dollar 231,000, respectively. In December, San Antonio paid a contractor dollar 320,000 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 2016. The company uses the specific interest method to determine the amount of interest capitalized on the building construction. How much interest expense will San Antonio report in its 2016 income statement