As of December 1, Year 2 a company obtained a $1,000,000 line of credit maturing in one year on which it has drawn $250,000,
a $750,000 secured note due in five annual installments, and a $300,000 three-year balloon note. The company has no other
liabilities. How should the company's debt be presented in its classified balance sheet on December 31, Year 2 if no debt
repayments were made in December?
OA. Current liabilities of $1,000,000; long term liabilities of $1,050,000.
OB. Current liabilities of $500,000; long-term liabilities of $1,550,000.
OC. Current liabilities of $400,000; long-term liabilities of $900,000.
OD. Current liabilities of $500,000; long-term liabilities of $800,000.