On January 2, 2014, Lionel Company issued $40,000 of notes payable, of which $10,000 is due on January 2  for each of the next four years. The proper balance sheet presentation on December 31, 2014, is

a. Current Liabilities, $40,000.

b. Current Liabilities, $10,000; Long-Term Liabilities, $30,000.

c. Long-Term Liabilities, $40,000.

d. Current Liabilities, $30,000; Long-Term Liabilities, $10,000.