Earty in its fiscal year ending December 31, 2018, 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 $800,000 San Antonio paid $200,000 and signed a noninterest-bearing note requiring the company to pay the remaining $600000 on March 28, 2020. 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 pald at closing During Apri, the old building was demolished at a cost of $7 Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows S1. PV of S1. EVA of S1. Construction expenditures were as follows: (FV of PVA of S1. EVAD of $1 and PVAD of S) (Use approprlate factor(s) from the tables provided.) Hay 1 July 30 $1,200,e88 1,500,080 980,800 1,800,8ee eptember 1 October 1 San Antonio borrowed $3,000,000 at 8% on May 1 to help finance construction. This loan, plus interest. company also had the following debt outstanding throughout 2018: $2,000,000, $4,000,000, 9% 6% long-term note payable 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 $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: initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction. 2. How much interest expense will San Antonio report in its 2018 income statement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the initial values of the various assets that San Antonio acquired or constructed during 201s. The company uses fic interest method to determine the amount of interest capitalized on the building construction. (Round your specif answers to the nearest whole dollar.) Land Land