The following selected liabilities of Star Electronics Inc. were outstanding on December 31, 2020.

a. $50,000, ten-year, 10% note payable, originating September 30, 2011.

b. $100,000, five-year, 7% note payable with Gold Star Bank, originating December 15, 2019. Per the loan

agreement, Gold Star has the right to demand immediate payment if Star Electronics falls short of the re-

quired current ratio of 1.8 for longer than three months. On the balance sheet date of December 31, 2020,

Star Electronics has a current ratio of 1.75. By March 15, the issuance date of the financial statements, the

current ratio is 1.85.

c. $100,000, 8% bonds payable outstanding, due on March 1, 2021. Star Electronics issues common stock

in early January 2020 and used the proceeds to pay off the bonds. Cash in excess of the bonds payable of

$100,000 amounted to $25,000.

d. $150,000, 15-year, 6%, noncallable note payable, originating September 15, 2018.

Required

Indicate whether each of the items above would be classified as a current liability or a noncurrent liability on the

balance sheet dated December 31, 2020, of Star Electronics. Provide support for your classification.