Paragraph Styles Problem 5 4. On January 3, 2019, HDR Company acquired a tract of land just outside the city limits. The land and existing building were purchased for $4.8 million. HDR Company paid $800,000 and signed a noninterest-bearing note requiring the company to pay the remaining $4,000,000 on December 31, 2020. An interest rate of 7% properly reflects the time value of money for this type of loan agreement. Transfer taxes, title insurance, and other costs totaling $48,000 were paid at closing. During February, the old building was demolished at a cost of $240,000, and an additional $200,000 was paid to clear and grade the land. Construction of a new building began on March 1 and was completed on October 30. Construction expenditures were as follows: March 31 June 30 July 31 September 1 $1,600,000 2,400,000 2,400,000 1,200,000 HDR Company did not borrow specifically for the construction project, but did have the following debt outstanding throughout 2019: $12,000,000, 8% long-term note payable $4,000,000, 5% long-term note payable In December 2019, the company purchased equipment and office furniture and fixtures for a lump sum price of $1,600,000. The fair values of the equipment and the furniture and fixtures were $1,080,000 and $720,000, respectively. In December 2019, HDR paid $680,000 for the construction of parking lots and landscaping Required: 1. Determine the initial values of the various assets that HDR acquired or constructed during 2019. (Hint: the assets mentioned are listed below) a Land b. Land Improvements c. Equipment d. Furniture and Fixtures e Building How much internet pynense will HDR Part in it 19 income statem