Branch Company, a building materials supplier, has $18,800,000of notes payable due April 12, 2022. At December 31, 2021, Branch signed an agreement with First Bank to borrow up to $18,800,000 tore finance the notes on a long-term basis. The agreement specified that borrowings would not exceed 65% of the value of the collateral that Branch provided. At the date of issue of the December 31,2021, financial statements, the value of Branch's collateral was$19,500,000. On its December 31, 2021, balance sheet, Branch should classify the notes as follows:

Multiple Choice

• $18,800,000 of current liabilities.

• $18,800,000 of long-term liabilities.

• $12,675,000 long-term and $6,125,000 current liabilities.

• $6,580,000 long-term and $12,220,000 current liabilities.

Answer rating: 100% (QA)

Answer The answer is Option is C 12675000 Long term and ... View the full answer