Secured note due in five annual installments and a 420000


As of December 1, year 2 a company obtained a $1,500,000 line of credit maturing in one year on which it has drawn $500,000, a $1,000,000 secured note due in five annual installments, and a $420,000 three-year balloon note. The company has no other liabilities. What amount should the company's long term debt (liability) be reported in its classified balance sheet on December 31, year 2 if no debt repayments were made in December?

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Accounting Basics: Secured note due in five annual installments and a 420000
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