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On the last day of its fiscal year ending December 31, 2024, the Safe & Reliable (SaR) Glass Coatpany eompleted two finaneing arraneeinents. The funds

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On the last day of its fiscal year ending December 31, 2024, the Safe \& Reliable (SaR) Glass Coatpany eompleted two finaneing arraneeinents. The funds provided by these initiatives will allow the company to expand its operations. 1. 58R issued 8% stated rate boinds with a face amoant of 8100 inglion. The bonds matare on Deceinber Ji. 2044 (20 yrars). The market rate of interest for smilar bond istues was 98. (4.5\% semianumal rate). Interest is paid sermangually (4N) on June 30 and December 31. bepinmine on June 30.2025 . 2. The company leased two manufacturing facilitics. Lease A requires 20 angeal lease payacrts ors 200,000 beginning on January 1 . 2025 Lease B also is for 20 years, beeinaing Janaary 1,2025 Terms of the lease require 17 annual lease paynents of $220.000 bepinaine on Jonuary 1, 2028 . Generalty accepted accouintine arinciples require both leases to be recorded as liabilities for the presrut value of the scheduled paymenti. Asume that a 105 interest rate properly reflects the turie value of mioncy for the lease oblieations Requlred: On the last day of its fiscal year endine December 3.,2024, the Safe \& Reliable (SER) Glass Conspany completed two financine arrungements. The funds provided by these initiatives will allow the company to expand its operations. 1. S\&R issued 8% stated rate bonds with a face amount of $100 million. The bonds mature on December 31 . 2044 (20 years). The market tate of interest for similar bond issues was 9%(4.5% semianaal rate). Inerest is paik semiannually (4\%) on June 30 and Decenber 31. beginning on June 30,2025 ; 2. The company leased two manufacturing facilities. Lease A requires 20 annual lease payments of \$200.000 begirning on January 1. 2025 , Lease B also is for 20 years, bepinning January 1.2025. Terms of the lease require 17 anmul lease payaments of $220,000 beginning on January 1.2028. Generally accepted accounting principles require borh leases to be recouded as liabilities for the present value of the scheduled payments. Assume that a 10% interest rate properly reflects the rime value of utoney for the lease obligations: Required

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