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The assets of FAMA & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $10 million and

The assets of FAMA & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $10 million and net plant and equipment equals $8 million. It has long-term debt of $2 million, and total equity of $7 million. What is the balance of current liabilities on the firm's balance sheet?

$1 million

$2 million

$0.5 million

$0

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