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How is the mortgage shown on the balance sheet?
A. As a current liability of $420,000
B. As a long term liability of $420,000
C. As another liability of $420,000 with a footnote breaking out current and long term portions
D. As a current liability of $120,000 and long term liability of $300,000
E. As a disclosure item only
Option D is the right answer.
Correct Answer is C. As another liability of $420,000 with a footnote breaking out current and long term portions
