John owes 2million that is due on feb. 28. his company, Ask an Expert

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John owes $2million that is due on Feb. 28. His company borrows $1,600,000 on Feb. 25 (5-year note) and uses the proceeds to pay down the $2 million note and uses other cash to pay the balance. How much of the $2 million note is classified as long-term in Dec. 31 financial statements?

a. $1,600,000

b. $400,000,

c. $2,000,000

d. $0

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M941488

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