E15-12 The chief accounting officer of Royal Textile. Inc., is considering how to report long- term notes payable and pension liabilities. Required 1. Royal's bookkeeper has assembled the following for long-term notes payable: Long-Term Notes Payable Total. Less: Current portion.. $537,000 (33,000) Discount on notes payable (1.000) $503.000 None of the discount is related to the current portion of long-term notes payable. Show how Royal's balance sheet should report these liabilities. 2. Royal's pension plan has assets with a market value of $800,000. The plan's accumulated benefit obligation is $865,000. What amount of long-term pension liability, if any, will Royal report on its balance sheet?