Question
Tanganga Company has $18,000,000 of notes payable due April 12, 2022. At December 31, 2021, Tanganga signed an agreement with First Bank to borrow up
Tanganga Company has $18,000,000 of notes payable due April 12, 2022. At December 31, 2021, Tanganga signed an agreement with First Bank to borrow up to $18,000,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 75% of the value of the collateral that Tanganga provided. At the date of issue of the December 31, 2021, financial statements, the value of Tanganga's collateral was $20,000,000. What amount of the note payable should Tanganga include in the current liabilities section of its December 31, 2021, balance sheet?
Multiple Choice
-
$-0-
-
$18,000,000
-
$15,000,000
-
$4,500,000
-
$3,000,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started