Question: Cali, Inc. had a $4,000,000 note payable due on March 15, 2012. On January 28, 2012, before the issuance of its 2011 financial statements, Cali

Cali, Inc. had a $4,000,000 note payable due on March 15, 2012. On January 28, 2012, before the issuance of its 2011 financial statements, Cali issued long-term bonds in the amount of $4,500,000. Proceeds from the bonds were used to repay the note when it came due. How should Cali classify the note in its December 31, 2011 financial statements?

a. As a current liability, with separate disclosure of the note refinancing.

b. As a current liability, with no separate disclosure required.

c. As a noncurrent liability, with separate disclosure of the note refinancing.

d. As a noncurrent liability, with no separate disclosure required.

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