Wolfe Company Has A 5-Year Mortgage For $150,000

Wolfe Company has a 5-year mortgage for $150,000 which requires 5 equal payments of principal plus interest. In the first year of the mortgage, Wolfe will report this liability as a: A. current liability of $30,000 and a long-term liability of $120,000. B. current liability of $150,000. C. long-term liability of $150,000. D. current liability of $120,000 and a long-term liability of $30,000.

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