Problem 10-12 (Algo) Acquisition costs; lump-sum acquisition; noninterest-bearing note; interest capitalization [LO10-1, 10-2, 10-3, 10-7] Early In Its fiscal year ending December 31, 2024, San Antonlo Outfitters finalized plans to expand operatlons. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the clty. The land and existing bullding were purchased by payIng $400,000 Immedlately and signing a noninterest-bearing note requiring the company to pay $800,000 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 $40,000 were paild at closing. At the end of April, the old bullding was demolished at a cost of $90,000, and an additional $70,000 was pald to clear and grade the land. Construction of a new bullding began on May 1 and was completed on October 29 . Construction expenditures were as follows: San Antonio borrowed $6,700,000 at 8% on May 1 to help finance construction. This loan, plus interest, will be pald In 2025. The company also had a $7,250,000,8% long-term note payable outstanding throughout 2024. In November, the company purchased 10 identical pleces of equipment and office furniture and fixtures for a lumpsum price of $800,000. The falr values of the equipment and the furniture and fixtures were $675,000 and $225,000, respectlvely. In December, San Antonlo pald a contractor $385,000 for the construction of parking lots and for landscaping. 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. Complete this question by entering your answers in the tabs below. How much interest expense will San Antonio report in its 2024 income statement? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar