On January 1st, Desert Company received cash in exchange for a $500,000 5%, 5 year, Note Payable. $50,000 is due at the end of each year for 4 years with the remaining $300,000 due at maturity (at the end of the 5 years). How should this Note Payable be classified on the balance sheet?

a) $500,000 long-term liability

b) $450 long-term liability, $ 50,000 short-term liability

c) $400,000 long-term liability, $100,000 short-term liability

d) 300,000 long-term liability, $200,000 short-term liability