Beagle Corporation, a building materials supplier, has $18,100,000 of notes payable due April 12, 2022. At December 31, 2021, Beagle signed an agreement with First Bank to borrow a bank loan to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 65% of the value of the collateral that Beagle provided. At the date of issue of the December 31, 2021, financial statements, the value of Beagle's collateral was $19,900,000. On its December 31, 2021, balance sheet, Beagle should classify the notes as follows:

Multiple Choice

• $18,100,000 of long-term liabilities.

• $6,335,000 long-term and $11,765,000 current liabilities.

• $18,100,000 of current liabilities.

• $12,935,000 long-term and $5,165,000 current liabilities.