Transit Airlines provides regional jet service in the Mid$-$South. The following is information on liabilities of Transit at December $31,2024.$ Transit$$s fiscal year ends on December $31.$ Its annual financial statements are issued in April.

Transit has outstanding $5\mathrm{.}5\%$ bonds with a face amount of $$73$ million. The bonds mature on July $31,2030.$ Bondholders have the option of calling $($demanding payment on$)$ the bonds on July $31,2025,$ at a redemption price of $$73$ million. Market conditions are such that the call option is not expected to be exercised.

A $$22$ million $7\%$ bank loan is payable on October $31,2027.$ The bank has the right to demand payment after any fiscal year$-$end in which Transit$$s ratio of current assets to current liabilities falls below a contractual minimum of $1\mathrm{.}9$ to $1$ and remains so for six months. That ratio was $1\mathrm{.}75$ on December $31,2024,$ due primarily to an intentional temporary decline in parts inventories. Normal inventory levels will be reestablished during the sixth week of $2025.$

Transit management intended to refinance $$59$ million of $5\%$ notes that mature in May $2025.$ In late February $2025,$ prior to the issuance of the $2024$ financial statements, Transit negotiated a line of credit with a commercial bank for up to $$53$ million any time during $2025.$ Any borrowings will mature two years from the date of borrowing.

Transit is involved in a lawsuit resulting from a dispute with a food caterer. On February $13,2025,$ judgment was rendered against Transit in the amount of $$45$ million plus interest, a total of $$46$ million. Transit plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company.

Required:

How should the $5\mathrm{.}5\%$ bonds be classified by Transit among liabilities in its balance sheet?

How should the $7\%$ bank loan be classified by Transit among liabilities in its balance sheet?

How should the $5\%$ notes be classified by Transit among liabilities in its balance sheet?

How should the lawsuit be reported by Transit?

Calculate the total current liabilities, total long$-$term liabilities, and total liabilities of a classified balance sheet for Transit Airlines at December $31,2024.$ Transit's accounts payable and accruals were $$51$ million.