22) A note payable which is due in more than 12 months is a long-term liability. (True/False)

23) To record any liability, the payment must be probable and reasonably estimated. (True/False)

24) On January 1, 2021, Major Company acquires $500,000 of Minor Company's 5-year, 8% bonds at a price of $650,000 to yield 6%. Interest is payable each December 31. The bonds are classified as held-to-maturity. Assuming that Major Company uses the effective-interest method, what is the amount of interest revenue that would be recognized in 2022 related to these bonds?

1. 25) Investments in equity securities are adjusted to fair value at the end of the period. (True/False)