Mazda Company reported the following liability balances on December 31, 2015 10% note payable issued on October 1, 2014 maturing October 1, 2016 12% note payable issued on March 1, 2014 maturing on March 1, 2016 2,000,000 1,000,000 The 2015 financial statement were issued on March 31, 2016. The entity has the discretion to refinance the 10% note payable for least twelve months after December 31, 2015 the 12% note payable was refinanced on a long-term basis. What amount of the notes payable should be classified as noncurrent on December 31, 2015? a. 6,000,000 b. 4,000,000 c. 2,000,000 d. 0

Mazda Company reported the following liability balances on December 31, 2015 10% note payable issued on October 1, 2014 maturing October 1, 2016 12% note payable issued on March 1, 2014 maturing on March 1, 2016 2,000,000 1,000,000 The 2015 financial statement were issued on March 31, 2016. The entity has the discretion to refinance the 10% note payable for least twelve months after December 31, 2015 the 12% note payable was refinanced on a long-term basis. What amount of the notes payable should be classified as noncurrent on December 31, 2015? a. 6,000,000 b. 4,000,000 c. 2,000,000 d. 0

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.10E

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