Budget Auto installment details

| June 3, 2016

Question
1. Budget Auto signed a $45,000, 8%, 30-year installment note on November 1, 2014. The note requires semiannual payments of $750 plus interest on May 1 and November 1 of each year. How will Budget Auto classify this loan on its December 31, 2014 Balance Sheet?

A. Current portion of long-term debt, $0; long-term debt, $45,000

B. Current portion of long-term debt, $1,500; long-term debt, $43,500

C. Current portion of long-term debt, $750; long-term debt, $44,250

D. Current portion of long-term debt, $45,000; long-term debt, $0

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