Purest Owes $1 Million That Is Due on February 28

question 75

Multiple Choice

Purest owes $1 million that is due on February 28.The company borrows $800,000 on February 25 (5-year note) and uses the proceeds to pay down the $1 million note and uses other cash to pay the balance.How much of the $1 million note is classified as long-term in the December 31 financial statements?

• A)$1,000,000.
• B)$0.
• C)$800,000.
• D)$200,000.

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Definitions:

Copper Mining

The process of extracting copper from the Earth, which is a crucial resource for electrical wiring, plumbing, and various alloys.

Water Users

Individuals or groups that utilize water resources for purposes such as agriculture, industry, or domestic use.

Marginal Social Benefit

The incremental value for society resulting from the creation of an additional unit of a good or service.

Marginal Social Cost

The comprehensive expense to society for producing an extra unit of a good or service, encompassing both individual costs and external ones.