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Spring Water Company Ltd. needed to raise $75 million of additional capital to finance the expansion of its bottled water facility. After consulting an investment
Spring Water Company Ltd. needed to raise $75 million of additional capital to finance the expansion of its bottled water facility. After consulting an investment banker, it decided to issue bonds. The bonds had a face value of $75 million and an annual interest rate of 4.5%, paid semi-annually on June 30 and December 31, and will reach maturity on December 31, 2030. The bonds were issued at 96.1 on January 1, 2021, for $72,075,000, which represented a yield of 5%. Your answer is incorrect. What amount will be reported on the statement of financial position at the end of the first year related to these bonds? (Round answers to decimal places, e.g. 125.) Notes Payable $
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