Develop a schedule that shows initial values of the various assets that San Antonio acquired or constructed during 2013. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.

Develop a schedule that shows the total interest expense that San Antonio will need to show for 2013 as it relates to construction of the new facility.

Early in its fiscal year ending December 31, 2013, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on April 25th 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 $600,000 on March 28, 2015. 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. Below is the trial balance for San Antonio Outfitters as of March 31. SAN ANTONIO OUTFITTERS Trial Balance March 31, 20XX Debit Cash .......................................................................................... $3,394,380 Accounts receivable ............................................................... 2,129,500 Prepaid insurance ................................................................... 42,300 Office equipment .................................................................... 119,300 Accumulated Depreciation, Office Equipment .................. Credit $11,750 Inventory ................................................................................. 2,104,000 Building ................................................................................... 100,000 Land.......................................................................................... 720,000 Accounts payable ................................................................... $ 104,410 Notes payable.......................................................................... 600,000 San Antonio, Capital .............................................................. 2,541,700 San Antonio, Withdrawals .................................................... 10,450 Revenue ................................................................................... 6,144,100 Wages expense ........................................................................ 654,500 Depreciation Expense, Office Equipment ........................... 4,250 Equipment rental expense ..................................................... 71,410 Office Supplies Expense ........................................................ 7,500 Advertising expense............................................................... 32,400 Repairs expense ...................................................................... 11,970 Totals ........................................................................................ $9,401,860 $9,401,860 During 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: San Antonio borrowed $3,000,000 at 8% on May 25 to help finance construction. This loan, plus interest, will be paid in 2014. In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $600,000 on account. The fair values of the equipment and the furniture and fixtures were $455,000 and $145,000, respectively. In December, San Antonio paid a contractor $285,000 for the construction of parking lots and for landscaping