Question: Answer: A, please explain. Cooper's inventory has been financed 100% with a long-term note. The note is coming due in 2016. Cooper has received a

Answer: A, please explain.

Cooper's inventory has been financed 100% with a long-term note. The note is coming due in 2016. Cooper has received a commitment from a new lender that permits five-year refinancing of debt up to an amount equal to 50% of inventory, which is expected to range between $14,000 and $20,000 in 2016. At December 31, 2015, how much of the company's currently maturing note payable can be classified as long-term debt?

a. $7,000 b. $6,000 c. $10,000 d. $9,000

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