Lionworks Inc

Multiple Choice

Lionworks Inc.signed a $45,000 8% 30-year installment note on November 1,2014.The note requires semiannual payments of $750 plus interest on May 1 and November 1 of each year.How will Budget Auto classify this loan on its December 31,2014 Balance Sheet?

A) Current Portion of Long-term debt,$0;Long-term debt,$45,000
B) Current Portion of Long-term debt,$45,000;Long-term debt,$0
C) Current Portion of Long-term debt,$750;Long-term debt,$44,250
D) Current Portion of Long-term debt,$1,500;Long-term debt,$43,500