Valencia Corporation Has the Following Liabilities at December 31, 2011

question 104

Multiple Choice

Valencia Corporation has the following liabilities at December 31, 2011: Valencia's December 31, 2011 financial statements were issued on March 19, 2012.On January 23, 2012, the entire €1,150,000 balance of the 8.9% note was refinanced by issuance of a long-term obligation payable in a lump sum.In addition, on December 29, 2011, Valencia consummated a non-cancelable agreement with the lender to refinance the 7.25%, €1,080,000 note on a long-term basis, on readily determinable terms that have not yet been implemented.On the December 31, 2011 statement of financial position, the amount of these notes payable that Valencia should classify as short-term obligations is

• A)$0.
• B)$1,080,000.
• C)$1,150,000.
• D)$2,230,000.

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Definitions:

Cultural Fragmentation

The process or state in which culture is divided into smaller segments, often leading to a loss of coherence or unity.

Dominant Language

The language that is most widely spoken and holds the most significant social, political, and economic power within a particular area or country.

Economic Influence

The impact that economic factors, policies, or conditions have on the behavior of individuals, businesses, and governments.

Political Influence

The capacity to affect the decisions, actions, or policies of political leaders or institutions.