Sanchez, Inc. reports the following liabilities (in thousands) on its December 31, 2025, balance sheet and notes to the financial statements.

Instructionsa. Identify which of the above liabilities are likely current and which are likely long-term. List any items that do not fit in either category. Explain the reasoning for your selection.b. Prepare the liabilities section of Sanchez’s balance sheet as at December 31, 2025.

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Accounts payable Unearned rent revenue Bonds payable Current portion of mortgage payable Income taxes payable $4,263.9 1,058.1 1,961.2 1,992.2 265.2 Mortgage payable Notes payable (due in 2028) Salaries and wages payable Notes payable (due in 2026) Warranty liability-current $6,746.7 335.6 858.1 2,563.6 1,417.3