On January 1, 2014, Michelin Company, a calendar-year company, issued €7,500,000 of mortgage notes payable, of which €2,500,000 is due on January 1 for each of the next three years. The proper statement of financial position presentation on December 31, 2014, is

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Out of the total mortgage notes payable amount of €7,500,000, €2,500,000 is due within the next year (2015). Therefore, €2,500,000 should be reported as current liabilities and the remaining €5,000,000 should be reported as non-current liabilities on the statement of financial position as of December 31, 2014.

On January 1, 2014, Michelin Company, a Calendar-Year Company, Issued