Clarendon Corporation has a $$5$ million liability at December $31,$ Year $1,$ of which $$1$ million is payable in Year $2.$ In its December $31,$ Year $1$ balance sheet, the company will report the $$5$ million debt as a:

Multiple Choice

$$4$ million current liability and $$1$ million long$-$term liability.

$$5$ million long$-$term liability.

$$1$ million current liability and $$4$ million long$-$term liability.

$$5$ million current liability.