E15-4 Analyzing debt and redeemable preferred stock (LO 15-32) ForeEver Yours, Inc., a manufacturer of wedding rings, issued two financial instruments at the beginning of 2017: a S10 million, 40-year bond that pays interest at the rate of 1% annually and 10.000 shares of $100 preferred stock that pays a dividend of 7.5% annually. The preferred stock has a mandatory redemption feature that requires the company to repurchase all outstanding shares at par ($100 per share) in 40 years. Required: Describe how each financial instrument wil affect the company's balance sheet and income statement in 2017