Question

A company has $5,000,000 in long-term debt outstanding. It expects to repay the loan evenly over...

A company has $5,000,000 in long-term debt outstanding. It expects to repay the loan evenly over the next four years. Which of the following represents how it will be shown on the year-end statement of financial position?

a) Accounts payable: $1,250,000, Long-term debts: $3,750,000

b) Current Portion of long-term debt: $1,250,000, Long-term debts: $3,750,000

c) Current Portion of long-term debt: $2,500,000, Long-term debts: $2,500,000

d) Long-term debt: $5,000,000

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