Tiedumy Heading 2 Title Paragraph V 19 Select Editing Grar Styles Grar Problem 5 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 2. How much interest expense will HDR report in its 2019 income statement