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Problem 6-15 Bonds and leases, deferred annuities [LO6-3, 6-7, 6-9] On the last day of its fiscal year ending December 31, 2016, the Sedgwick & Reams (S&R) Glass Company completed two financing arrangements. The funds provided by these initiatives will allow the company to expand its operations. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1, S&R issued 7% stated rate bonds with a face amount of $100 million. The bonds mature on December 31, 2036 (20 years). The market rate of interest for similar bond issues was 8% (4.0% semiannual rate). Interest is paid semiannually (3.5%) on June 30 and December 31, beginning on June 30, 2017 2. The company leased two manufacturing facilities. Lease A requires 20 annual lease payments of $360,000 beginning on January 1, 2017. Lease B also is for 20 years, beginning January 1, 2017. Terms of the lease require 17 annual lease payments of $380,000 beginning on January 1, 2020. Generally accepted accounting principles require both leases to be recorded as liabilities for the present value of the scheduled payments. Assume that a 9% interest rate properly reflects the time value of money for the lease obligations. What amounts will appear in S&R's December 31, 2016, balance sheet for the bonds and for the leases? (Enter your answers in whole dollars.) Bond liability Lease A liability Lease B liability 90,103,613 $ 2,732,570