Wolfe Company has a 5-year mortgage for $120,000 which required 4 equal payments of principal plus interest. in the first year of the mortgage. Wolfe will report this liability as a current liability of $30.000 and a long - term liability of $90,000. long - term liability of $120.000. current liability of $90.000 and a long - term liability of $30.000 current liability of $120.000