Tazo Inc Signed a $12,000 10% 15-Year Installment Note on December

Multiple Choice

Tazo Inc. signed a $12,000 10% 15-year installment note on December 1, 2016. The note requires quarterly payments of $200 plus interest on March 1, June 1, September 1, and December 1 of each year. How will Tazo classify this loan on its December 31, 2016 Balance Sheet?

A) Current Portion of Long-term debt, $400; Long-term debt, $11,600
B) Current Portion of Long-term debt, $800; Long-term debt, $11,200
C) Current Portion of Long-term debt, $200; Long-term debt, $11,800
D) Current Portion of Long-term debt, $600; Long-term debt, $11,400