A Company has a note payable for $300,000 on January 31, 2014. Starting on February 1, 2014, the company is required to pay $75,000 on the note each month. The first payment is on February 1, 2014, the second payment is on March 1, 2014, the third payment is on April 1, 2014 and the final payment is on May 1, 2014. How will this note be reported on the balance sheet at January 31, 2014?

Select one:

a. Current liability, $300,000

b. Long-term liability, $225,000

c. I want to leave this answer blank

d. Current liability, $75,000; long-term liability, $225,000

e. Long-term liability, $300,000