Warped Company has the following liabilities at December 31, 2015. For each liability, indicate the amount that should be reported as a current and non-current on the December 31, 2015 Balance Sheet:

a.

$18 million of 10% notes are due on March 31, 2017. A debt covenant requires Warped Company to maintain current assets at least equal to 150% of its current liabilities. On December 31, 2015, Warped is in violation of this covenant. Warped Company obtained a waiver from a bank until June 2016, having convinced the bank that the company's normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2016.

b.

$30 million of 8% notes were issued for $30 million on May 31, 2011. The notes mature on May 31, 2021, but investors have the option of calling (demanding payment on) the notes on June 30, 2016. However, given current market conditions it is not expected that the call option will be exercised.