Indicate the best answer for each question in the space provided.
On November 30, Year 1, Central Food purchased two trucks for a total of $140,000, issuing a one-year, 6% note payable, all due at maturity. The interest on this loan is stated separately.
-Refer to the above data. The liability for this loan as of December 31, Year 1:
A) Is equal to its maturity value.
B) Is equal to the book value of the two trucks that were acquired in exchange.
C) Is classified as a long-term liability, since it was used to acquire non-current assets.
D) . Is classified as a long-term liability if Central Food has the intent and ability to refinance by taking out a new loan not due for several years.

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The Answer of Indicate the best answer for each question in the space provided.
On November 30, Year 1, Central Food purchased two trucks for a total of $140,000, issuing a one-year, 6% note payable, all due at maturity. The interest on this loan is stated separately.
-Refer to the above data. The liability for this loan as of December 31, Year 1:
A) Is equal to its maturity value.
B) Is equal to the book value of the two trucks that were acquired in exchange.
C) Is classified as a long-term liability, since it was used to acquire non-current assets.
D) . Is classified as a long-term liability if Central Food has the intent and ability to refinance by taking out a new loan not due for several years.

Indicate the Best Answer for Each Question in the Space