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250 words please
Your friend has just purchased one hundred shares of the common stock of the Davidson Corporation. Your friend notices that the company shows an amount of $5,000,000 labeled as bonds payable in the balance sheet. You have just recently received your license as a CPA, and your friend has come to you for advice. She begins by asking: “What are bonds payable, and what should I know about them in terms of my investment in Davidson Corporation?
Required:
How would you respond to the question posed by your friend?
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