Response to the following problem:
On January 1, 20X1, Sandy Hospital issued 500 of its 9 percent, $1,000 bonds at a rate of 95 percent. Interest is payable semiannually on July 1 and January 1, and the bonds mature in ten years. The hospital paid bond issue costs of $20,000.
Required: What amount of long-term debt should be reported for the bonds in the hospital's December 31, 20X1 balance sheet?