On January 1,2013,Thames Company Purchases Property and Signs a 6-Year

question 139

Multiple Choice

On January 1,2013,Thames Company purchases property and signs a 6-year mortgage note for $60,000 at 4%.Please see the partial amortization schedule below. $$\begin{array} { l l r } \text { AMORTIZATION SCHEDULE } & \text { Principal } & \$ 60,000.00 \\\text { (partial) } & \text { Rate } & 4.00 \% \\& \text { Payment } & \$ 980.00\end{array}$$ At January 1,2013,what portion of the balance of the mortgage payable should be shown as a current liability?

• A) $11,760.00
• B) $9,533.52
• C) $2,226.48
• D) $50,466.48

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