At December 31, 2018, a Water Enterprise Fund Has Outstanding

Multiple Choice

At December 31, 2018, a Water Enterprise Fund has outstanding revenue bonds payable of $1 million, of which $40,000 is due to be paid on February 15, 2019, and $50,000 is due to be paid on August 15, 2019. How should it report this liability in its fund statement of net position as of December 31, 2018?

A) It should report $40,000 as a current liability and disclose $960,000 in a note
B) It should report $40,000 as a current liability and $960,000 as a noncurrent liability
C) It should report $90,000 as a current liability and $910,000 as a noncurrent liability
D) It should report no liability for this obligation on the fund statement of net position