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Topic
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Able, Inc. had the following amounts of long-term debt outstanding at December 31, Year 1:
14 1/2% term note, due Year 2 $ 3,000
11 1/8% term note, due Year 5 107,000
8% note, due in 11 equal annual principal payments, plus interest beginning December 31, Year 2 110,000
7% guaranteed debentures, due Year 6 100,000
Total $ 320,000
Able’s annual sinking-fund requirement on the guaranteed debentures is $4,000 per year. What amount should Able report as current maturities of long-term debt in its December 31, Year 1, balance sheet?
a.
$7,000
b.
$4,000
c.
$13,000
d.
$10,000
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