United Supply has a $5 million liability at December 31, 2021, of which $1 million is payable in each of the next five years. United Supply reports the liability in the balance sheet as a:

Multiple Choice

• $1 million current liability and a $4 million long-term liability.

• $4 million current liability and a $1 million long-term liability.

• $5 million long-term liability.

• $5 million current liability.