Question
An entity has a balance of $51,484,977 in its bonds payable account as at December 31, 20x8. The coupon rate on the bonds is 3.5%.
An entity has a balance of $51,484,977 in its bonds payable account as at December 31, 20x8. The coupon rate on the bonds is 3.5%.
The bonds payable were issued on December 31, 20x0. The face value of the bonds is $50,000,000. The bonds mature on December 31, 20x20. On July 1, 20x9, the entity repurchased 40% of the bonds on the open market at 102.5. The bonds pay interest on June 30 and December 31.
What is the impact of the above on the Statement of Cash flow for the year ended December 31, 20x9? Assume the entity uses the indirect method. Please show your work.
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