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11 Branch Company, a building materials supplier, has $17,400,000 of notes payable due April 12, 2022. At December 31, 2021, Branch signed an agreement with
11 Branch Company, a building materials supplier, has $17,400,000 of notes payable due April 12, 2022. At December 31, 2021, Branch signed an agreement with First Bank to borrow up to $17,400,000 to refinance the notes on a long-ter basis. The agreement specified that borrowings would not exceed 70% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2021, financial statements, the value of Branch's collateral was $19,700,000. On Its December 31, 2021, balance sheet, Branch should classify the notes as follows: Multiple Choice $5,220,000 long-term and $12.180,000 current abilities. $17,400,000 of current liabilities. $17,400,000 of long-term labilities. $13,790,000 long-term and $3,610,000 current liablitles
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