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The Liability for This Loan as of December 31, 2010

Question 185

Multiple Choice

The liability for this loan as of December 31, 2010:


A) Is equal to its maturity value.
B) Is equal to the book value of the two trucks that were acquired in exchange.
C) Is classified as a long-term liability, since it was used to acquire non-current assets.
D) Is classified as a long-term liability if Central Food has the intent and ability to refinance by taking out a new loan not due for several years.

Correct Answer:

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