On January 1, 2016, Lacey Treetoppers borrowed $300,000. The principal is to be paid back in annual payments of $20,000 on December 30 of each year.

a. assuming that lacey has met all principal payments on a timely basis, how should this liability be reported on the December 31, 2020 balance sheet?

b. Assume that during December 2020, the management of lacey realizes that including the upcoming $20,000 principal payments as a current liability reduces the company's current ratio below 2:1, the ratio required in a long-term note payable signed by the company. Discuss how management might be able to avoid classifying the current maturity as a current liability.