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As of December 31, 2019, XYZ Company has a liability in the amount of $400,000 that is coming due on July 1, 2018. XYZ has

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As of December 31, 2019, XYZ Company has a liability in the amount of $400,000 that is coming due on July 1, 2018. XYZ has arranged to refinance the debt so that when it comes due, instead of paying off the debt. XYZ will sign a new promissory note where the entire principal and interest will be paid at the end of 5 years from that date. How is this classified on the December 31, 2019 Balance Sheet? O a Noncurrent Liability $400,000 O b. Asset $400,000 O c. Current Liability $200,000, Noncurrent Liability $400,000 Od. Stockholder's Equity $400,000 QUESTION 4 A Current Liability O will always require cash to pay it off b. will be paid off more than 12 months from the Balance Sheet date O will not affect a company's current ratio d will require the use of a current asset creation of a new liability, delivery of goods, or performance of a service within one year to pay it off O

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