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Tazo IncSigned a $30,000 10% 15-Year Installment Note on December 1,2014

Question 24

Multiple Choice

Tazo Inc.signed a $30,000 10% 15-year installment note on December 1,2014.The note requires quarterly payments of $500 plus interest on March 1,June 1,September 1,and December 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,$1,000;Long-term debt,$29,000
B) Current Portion of Long-term debt,$2,000;Long-term debt,$28,000
C) Current Portion of Long-term debt,$500;Long-term debt,$29,500
D) Current Portion of Long-term debt,$1,500;Long-term debt,$28,500

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