Question: On January 1 , Year 1 , Renquist Corp. borrowed $ 1 0 0 , 0 0 0 by signing a 5 - year interest

On January 1, Year 1, Renquist Corp. borrowed $100,000 by signing a 5-year interest bearing note payable with annual interest of 8%. The terms of the contract require Renquist to repay the principal over 5 years with a payment of $20,000 made at the end of each year. On December 31, Year 1, Renquist made the first payment plus interest. What portion of the note should be classified as current liabilities?
Multiple choice question.
$20,000
$0
$80,000
$100,000

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