Coyote Company has a note payable for $100,000 which requires 4 equal annual payments of principal plus interest. In the first year of the note, Coyote will report this liability as a:
A) current liability of $100,000.
B) long-term liability of $100,000.
C) current liability of $75,000 and a long-term liability of $25,000.
D) current liability of $25,000 and a long-term liability of $75,000.
D) current liability of $25,000 and a long-term liability of $75,000.
Explanation: note total/4; 1/4 = current amount, 3/4 = long-term; ex: $100,000/4 = $25,000 current, $75,000 long-term.
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